Mortgage Rates Remain Extremely Low

As of this August, all major mortgage rates have remained extremely low, thanks to recent economic indicators. The major trends in stock market indexes, oil prices, gold prices and Treasury’s indicate that rates will remain low for at least the near future.

General Rates

The 30 year fixed rate offered by conventional lenders is still at all time lows.  Recent economic news has indicated that rates will not be increasing in the short term.  This is great news for potential homebuyers and homeowners that wish to refinance their loans!

What is keeping Rates so Low?

Four major economic indicators are battling one another to keep the mortgage rates at historical lows.

First and foremost, the average price of oil per barrel has recently increased from $56 to $57 based on the watchful eyes of OilPrice.com. This slight increase reflects overall higher cost for energy, which tends to move prices up in general. Anytime that prices move up, mortgage rates could slightly increase with them.

On the flip side, the price of gold jumped up to $1,429 per ounce from the previous $1,420. Anytime there is a serious upward change in the price of gold, this shows that major investors have developed doubt in the overall economy. Doubt about the economy tends to push mortgage rates down. The latest prices in gold per ounce can be found at https://goldprice.org/

The 10-year Treasury yield, which is the single most indicative indicator of mortgage rates, has moved very slightly from 2.05% to 2.06%. When this yield starts to increase, it usually means that mortgage rates will also soon rise with it.

Global Trade Continues to Have Negative Outlooks

Along with the previous economic indicators, the overall global trade market has continued to keep pressure on lower mortgage rates. While the US and China work out their spat and come to an agreement about tariffs and other issues, many markets are holding their breath to see how the trade talks will affect prices of goods coming from China. This keeps mortgage rates low as some experts fear major price increases for imported goods may soon appear.

There are also talks that trade with Europe may be troublesome in the near future. Tariffs on goods produced in Europe have been threatened in a counter measure to a new rule from France that is imposing taxes on American based organizations within France. More tariffs mean higher prices which is applying pressure to keep mortgage rates at current levels.

Recommendations for Mortgage Rate Locks

Major markets shift up and down throughout the months and years. While it is impossible to predict exact details, broad generalizations can be made which allow people to make educated decisions on mortgage rates.

If you are buying or refinancing a home, and the expected close date is within the next 30 calendar days, then you should definitely talk to your mortgage lender and lock the rate now.  Rates are extremely low and while most of the market indicators show that rates should remain at this level for the next few weeks, you don’t want to gamble on some unforeseen event pushing rates up unexpectedly. Contact your local Inlanta Mortgage loan advisor today about rate locking, refinancing, or purchasing your home!