But there are always numbers. If the stocks are up, generally mortgage rates get an upward push. Oil prices, when they rise, indicate possible shortages of the valuable resources, and that fuels concerns about inflation -- pushing rates higher.
Gold prices, on the other hand, tend to rise when market participants are worried about the economy. Increasing gold prices can predict falling mortgage rates. because when people lose confident in the economy, they move their money into bonds, mortgage-backed securities and gold.
Finally, there is investor confidence. CNNMoney's Fear & Greed Index measures how investors feel about markets right now. When the index moves in a greedy direction, rates tend to rise, and when it moves into a fearful level, rates tend to fall.
|Conventional 30 yr Fixed||3.875||3.875||Unchanged|
|Conventional 15 yr Fixed||3.250||3.250||Unchanged|
|Conventional 5 yr ARM||3.125||3.717||Unchanged|
|30 year fixed FHA||3.375||4.324||Unchanged|
|15 year fixed FHA||2.750||3.688||Unchanged|
|5 year ARM FHA||2.875||4.003||Unchanged|
|30 year fixed VA||3.500||3.669||Unchanged|
|15 year fixed VA||3.000||3.307||-0.08%|
|5 year ARM VA||3.250||3.333||-0.01%|
With such Â mixed bag of indicators, it's unlikely that rates will move much either way today, absent any earthshaking news or exceptionally bizarre tweets.
There are several events this week that can affect mortgage rates.
I don't expect rates to move that much this week. If you can grab something you like, especially with no extra charges, go for it.
Mortgage interest rates depend on a great deal on the expectations of investors. Good economic news tends to be bad for interest rates, because an active economy raises concerns about inflation. Inflation causes fixed-income investments like bonds to lose value, and that causes their yields (another way of saying interest rates) to increase.
For example, suppose that two years ago, you bought a $1,000 bond payingÂ five percent interest ($50) each year. (This is called its â€ścoupon rate.") Thatâ€™s a pretty good rate today, so lots of investors want to buy it from you. You sell your $1,000 bond for $1,200.
The buyer gets the same $50 a year in interest that you were getting. However, because he paid more for the bond, his interest rate is not five percent.
TheÂ buyer gets an interest rate, or yield, of only 4.2 percent. And thatâ€™s why, when demand for bonds increases and bond prices go up, interest rates go down.
However, when the economy heats up, the potential for inflation makes bonds less appealing. With fewer people wanting to buy bonds, their prices decrease, and then interest rates go up.
Imagine that you have your $1,000 bond, but you can't sell it for $1,000, because unemployment has dropped and stock prices are soaring. You end up gettingÂ $700. The buyer gets the same $50 a year in interest, but the yield looks like this:
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2017 Conforming, FHA, & VA Loan Limits
Mortgage loan limits for every U.S. county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)