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Mortgage rateswere either flat or slightly higher, depending on the lender today. Movement in underlying bond markets suggested a modest increase in rates, but it came too late in the day for most lenders to respond with a mid-day rate change. As such, rates SHOULD be slightly higher, all other things being equal. If bond markets don't change much between now and tomorrow morning, most lenders will be in slightly worse shape.
Keep in mind that we're talking about extraordinarily small variations in loan pricing. Few, if any borrowers would see a change in the actual interest rate quote applied to their prospective loan balance. Rather, the weakness would only be seen in the form of slightly higher upfront costs for the same rates quoted today and late last week (which are still among the lowest of 2017)....(read more)Forward this article via email:Send a copy of this story to someone you know that may want to read it.

Mortgage ratesmoved higherfor the second straight day amid a general lack of actionable information. Some investors noted that the results of the elections in the U.K. were surprising, but not in a way that was any help to interest rates. In general, rates found most of their motivation from the absence of significant drama in this week's Comey hearing. Despite the modest increase, conventional 30yr fixed rates are still very close to their best levels of the year. An exceptionally busy calendar in the coming week could also be causing some anxiety for market participants (the traders whose decisions affect rates on a day-to-day basis). In addition to several important economic reports, we'll also hear from the Fed on Wednesday. The Fed is almost certain to hike rates at this meeting, but investors are more interested in any changes to the Fed's verbiage and forward rate-hike forecasts.
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Mortgage ratesmanaged to holdin line with 2017's lowest levels for a 2nd day, even though underlying bond markets suggested a move higher. That means the prices of mortgage-backed-securities (MBS--the bonds that dictate mortgage rates) were lower. When MBS prices are lower, it means investors are paying lenders less to buy mortgages. Lenders then raise rates to entice investor demand.
If the nuts and bolts underlying the mortgage rate market suggested a move higher, why were rates able to hold their ground? The first part of this answer is that we're not talking about huge amounts of movement in bond markets. US Treasuries did experience a fair amount of weakness, but MBS held their ground better by comparison. ...(read more)Forward this article via email:Send a copy of this story to someone you know that may want to read it.

Mortgage ratesunexpectedly fellto new 7-month lows today, following bond market gains in the overnight hours (Asian and European trading sessions). Interest rates are driven by bond markets. The latter is part of an ecosystem of "risk" associated with the entire financial market. At times, most of that broader market will collectively move toward or away from risk. When investors are shedding risk, bonds (and thus, mortgage rates) tend to benefit. Adding to the bigger-picture move was a headline regarding China's intention to buy more US bonds. Higher demand for bonds results in higher prices (which move inversely from rates)...(read more)Forward this article via email:Send a copy of this story to someone you know that may want to read it.