AgentIndustry News

Mortgage rates fall, economy slows

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Mortgage rates are falling this morning, approaching the lows of the year; even the lowest-fee 30-year loans are down to 6 percent right now. The 10-year T-note's decisive break below 4.53 percent -- the floor since September -- to 4.41 percent this morning could easily pull mortgages into the high fives. The drop in rates began in an odd way over Thanksgiving, simultaneous with a decline in the value of the dollar versus the euro. Peculiar in three ways: American markets were holiday-quiet; there were no new economic data; and dollar declines often result in foreign sales of bonds and higher interest rates here. Then the pattern came clear: the currency market is betting on a rather harder than softer landing for the American economy versus European strength, Fed easing ahead, and those lower rates here making the dollar less attractive versus the euro. This week's economic data fit the classic slowdown sequence: the economy is slowing, slowing broadly now, but the Fed still has an ...