While we can't say that this week's best mortgage rate offerings were quite as good as last week's best, they were pretty darn close. In fact, quite a few lenders have simply been quoting the same rates for the entire 2-week period. That happens from time to time, but it never happens after rates make a strong run to the lowest levels in nearly 2 years. Seriously, I can't find any past examples of a similar turn of events. Therefore, it's safe to declare this to be yet another awesome week for rates, even though it's not an awesome week for the average mortgage originator to have much time to sleep, eat, or chill with the fam!...(read more)
Mortgage rates moved lower for the 2nd straight day, which brings them back in line with Monday's levels. While these aren't quite the lowest rates of the past 2 weeks, they're much closer than they were on Tuesday morning. That means the average lender is nearly able to offer the lowest rates since September 2017!
In the slightly bigger picture, underlying bond markets seem to be consolidating after the aggressive move to lower rates 2 weeks ago. In other words, if we can look past some of the recent volatility, the general trend has been sideways for nearly 2 weeks now. This is a good thing because, again, the "sideways" is happening at long-term lows for rates. All things being equal, that's a sign that the market is at least willing to see rates move even lower....(read more)
Mortgage rates moved higher over the past 2 days, but managed to find their footing today. I'll be the last person to claim interest rates and stock prices must follow one another, but at times, their relationship is the most convenient way to understand the market. Stocks had been rising last week while rates were holding at the lowest levels since September 2017. More than anything, this reflected optimism on both sides of the market surrounding potential Fed rate cuts in 2019.
Last Friday provided some important insight....(read more)
Mortgage rates moved higher again today, even though underlying bond markets were relatively flat. This is due to the timing of market movement over the past 2 days in conjunction with typical mortgage lender pricing conventions. Specifically, bonds weakened steadily throughout the day yesterday. Bond weakness implies higher rates, but not every lender will go to the trouble to adjust their rate sheet offerings unless the move is big enough. Even then, bonds can continue to weaken even after some lenders make mid-day adjustments....(read more)
Mortgage rates had a fairly epic week last week, spending each day effectively pinned to the lowest levels since September 2017. That followed a swift move lower in the previous week and solid improvements every week since late April. Typically, we see a fairly quick bounce after dropping so rapidly to long-term lows. Last week was exceptional in that the lows managed to stick around for 5 straight days.
Things may be changing today. Over the weekend, the bond market (which dictates mortgage rates and interest rates in general) digested news that Mexico tariffs are off the table for now. The initial tariff announcement was a key source of inspiration behind last week's stellar performance so it's no surprise to see rates push back in the other direction as the news is unwound....(read more)