Current Interest Rate Trend:
Over the past six months Rates bottomed out in September and then rose after the election until they peaked in mid-January. Since the peak, they have improved roughly .25% as of February 1.
Short-term Interest Rate Prediction:
Momentum seems to be strong and it appears that Interest rates in February will continue to improve.
Six-Month Historical Graph
Graph represents the US 10-year Treasury
Key Factors Influencing Interest Rates currently:
- Inflation – Inflation continues to be the Fed’s primary concern and they have stated they’ll keep rates high until inflation has fallen closer to their 2% target.
- Unemployment – The secondary concern of the Fed is unemployment. If Unemployment moves above 4.2% the Fed may likely take immediate action to lower interest rates to avoid higher unemployment.
- Bank Liquidity – A lesser-known issue that has hidden in the background for a while is bank liquidity. Banks both in the US and globally are running with lower-than-normal liquidity. If this trend continues it could trigger emergency action by the Fed which would immediately push interest rates lower.
We hope this quick look at the market and interest rates is helpful. We will continue to watch the market and update you on any opportunities that could be beneficial. If you have any questions about your mortgage, reverse mortgages, or real estate in general please give us a call and feel free to share this with your friends and family.
Trevor Carlson
President – Reverse Mortgage Specialist
Heritage Reverse Mortgage
435-359-9000
trevor@heritagehl.com
Heritage NMLS #1497455
Trevor’s NMLS #: 267962
1060 South Main Street, Bldg. A Suite 101B, St George, Utah 84770
Disclosure: This is not an offer to Lend. Interest rate trends and information is based on the 10-year US Treasury which is a key factor influencing Reverse Mortgage and standard Mortgage interest rates. Heritage is an equal housing lender.