Market Intelligence September 2017

Mortgage Rates

Mortgage rates tend to follow the path of the 10-Year Treasury bond.  And, over the course of 2017, the 10-Year US Treasury rate has fallen to fresh lows.  Shortly after the 2016 presidential election, interest rates surged on the hopes of a pro-growth agenda in a low-growth world.  But, as that agenda stalled and investor uncertainty began to increase, the rate of the 10-Year Treasury bond began to decline.

As indicated in the chart below, mortgage rates have declined almost half a percent year-to-date, down to approximately 3.9% for a conventional 30 year mortgage.

US 30 Year Mortgage Rate Chart

Source: Y Charts

Since 2009, economic data has improved and growth in the economy has expanded at a modest pace.  Assuming this trend continues, interest rates are expected to rise over the long-term.  The current decline in mortgage rates provides a good opportunity to take out a mortgage or refinance an existing loan.

As your trusted advisor, the Madison team acts as your advocate in the financial marketplace.  Please reach out to any member of the Madison team should you have questions or would like us to make a referral in our network to assist you with refinancing or restructuring your mortgage.

This material is for informational purposes only and is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Madison Wealth Management does not provide tax, legal or accounting advice. © Madison Wealth Management 2017