What’s triggering VA Loan rates today?
Average VA Loan rates dropped yesterday, as we predicted. But the fall was modest and didn’t take them back to their recent low seen last Wednesday. Still, VA Loan rates remain extremely close to that.
There’s nothing scheduled on today’s calendar that’s likely to move rates far. But investors may jockey for position ahead of two important Federal Reserve events tomorrow (see below). And, of course, the emergence of news stories that affect the economy can introduce volatility at any time.
The data below the table are indicative of VA Loan rates today edging higher. However, per usual, certain events might change that forecast.
Program Rate APR* Change
30 year VA Fixed 3.25 3.671 Unchanged
15 year VA Fixed 2.875 3.874 +0.06%
5 year VA ARM 3.50 4.29 +0.19%
Your VA loan rates might be different.
Financial data affecting today’s VA Loan rates
This morning, markets looked set to deliver VA Loan rates are moderately higher today. By 10:15 a.m. (EST), the data, compared yesterday's data, goes as follows:
Major stock indexes were all lower after opening (good for VA Loan rates). When investors buy shares they’re often selling bonds, which pushes prices of Treasuries down and increases yields and VA Loan rates. The opposite happens when indexes fall.
Gold fell to $1,393 an ounce, up from $1,403. Bad for VA Loan rates. In general, it’s better for VA loan rates when gold increases, and worse when gold decreases. Gold rises when people worry about the economy. And worried folks tend to push VA loan rates lower.
Oil held steady at $58/barrel (neutral for VA Loan rates because energy plays a large role in creating inflation)
The 10-year Treasuries edged up to 2.06% from 2.02%. (bad for borrowers). More than any other market, VA Loan rates tend to follow these Treasury bonds.
It might be a better day for VA Loan rates.
Today’s triggers of change
The US-China trade conflict is still very much alive in spite of recent developments. Last month, Presidents Trump and Jinping met in Osaka, Japan during G20 summit. As a result, bilateral trade talks are begin again this week and America held off on implementing planned new tariffs. But existing tariffs (including resentments/disagreements) remain in point.
So far, markets are skeptical about how much difference the meeting will make. Some question if the resumed talks can make much progress.
EU vs US
Meanwhile, possibility of a second front in the tradewars remains real. And there are rumblings of escalations in the US-European Union (EU) trade disputes. Last week, U.S. proposed added tariffs on EU goods, though yet to be implemented.
The EU is biggest trading bloc in world and a trade war would be a clash of Titans that could cause harm to global economy — as well as economies of participants.
How trade disputes hurt
Markets hate trade wars because they bring uncertainty, dampen some trade, global growth, and disrupt established supply chains. The President is confident analysis is wrong and America will come out a winner. However, some fear a trade war — on 2 fronts — might be a drag on the global economy that hits America hard. That fear is likely to exert long-term downward pressure on VA Loan rates. That’s not to say they won’t move up in response to factors. But, absent resolutions, such trade wars may see the current downtrend in VA Loan rates continuing.
Are the markets bottoming out?
Since last November, average VA Loan rates show them falling with consistency. Only briefly have they risen.
Some experts now warn that they’re unlikely to go lower — at least, absent disastrous incidents that push them further lower. Such news remains a possibility. Currently, tensions in the Middle East could quickly turn into a war with the United States. Trade disputes may become more widespread and toxic, triggering global recession. What's more, events may quickly transpire that are currently on no one's radar.
But, without such a stimulus, experts reckon rates are unlikely to fall further.
Meanwhile, deals that are available for you to VA Loan Lock in are now excellent by all standards. That’s why we suggest Locking your VA loan rates today if you’re less than 15 days from closing.