Mortgage News

Mortgage Rates Ebb Higher, But Only Slightly

Mortgage Rate News - Thu, 05/16/2019 - 17:56
Mortgage rates hit the lowest levels in more than a month yesterday and came very close to the lowest levels in more than a year. Things changed today , but only slightly. Without a fresh supply of drama or weaker economic data, the bond market deteriorated. Bonds typically benefit when investors are seeking safe havens in response to economic risks. This pushes bond prices higher and yields (aka "rates") lower. Whereas there were concerns about Italian budget news and a weaker reading on Retail Sales yesterday, today brought stronger economic data across the board. Bonds reacted by weakening (i.e. moving higher in yield/rate) and that was basically that. If there's a saving grace for the bond/rate market is that the weakness found a limit fairly quickly and rates were only modestly higher
Categories: Mortgage News

Rates Close In On Lowest Levels in Over a Year

Mortgage Rate News - Wed, 05/15/2019 - 17:06
Mortgage rates have had a few first world problems to complain about recently. Well, there's really only been one: a relative inability to keep pace with the broader decline in rates as seen in the Treasury market. If Treasuries are the "master," mortgage rates are the proverbial dog on a leash. The dog can pull ahead, heel faithfully, or drag recalcitrantly behind. The latter has been mortgage rates' M.O. for the past few weeks owing to some abstruse loan performance data that made investors rethink the value they were placing on mortgage investments. But now, the broader rate market has done well enough over the past two weeks that even the mortgage market is forced to participate. To be clear, mortgage rates haven't dropped nearly as much as Treasuries, but at least they've dropped! The
Categories: Mortgage News

Mortgage Rates Holding Near Recent Lows Ahead of Retail Sales Data

Mortgage Rate News - Tue, 05/14/2019 - 16:41
It's been a while since the bond market (which dictates rates) has been able to digest what we would consider to be a "top tier" economic report. Why do we care about such things? Simply put, economic data is one of the key considerations for bonds. Stronger data tends to promote bond selling and thus higher mortgage rates . Conversely, when the data is weaker than expected, it generally coincides with rates holding ground or moving lower. The "all other things being equal" caveat is imperative when it comes to economic data's impact on rates. There are certainly other factors that can supersede even the most important reports. That said, the other things are rarely scheduled in advance unless we're talking about monetary policy updates from the Fed or other major central banks. So will tomorrow
Categories: Mortgage News

Lowest Mortgage Rates in More Than a Month

Mortgage Rate News - Mon, 05/13/2019 - 17:27
Mortgage rates moved moderately lower to start the new week as trade tensions remained in focus. In general, the worse the US/China trade relationship is looking at any given moment, the better it has been for the bond market (and the worse it's been for stocks). This is typical behavior for markets because stocks tend to benefit from growth and certainty while bonds tend to benefit when investors are uncertain, downbeat, or looking for safe havens to ride out volatility. As bonds 'benefit' from that demand, prices rise and rates fall. Today's drop brings the average lender back to the lowest rates since April 2. Despite the seemingly big move, Friday's rates weren't too much higher. In fact, many borrowers will be seeing the same interest rate at the top of a loan quote with the only difference
Categories: Mortgage News

Rates End Week at Highs as Drama Dies Down

Mortgage Rate News - Fri, 05/10/2019 - 17:46
Mortgage rates moved up on Friday, ultimately making it to the highest levels of the week for the average lender. Underlying bond markets came under pressure as Trump made several reassuring comments about the future potential for a trade agreement between the US and China. Before that, trade war headlines dominated the week and had taken rates and stock prices generally lower. The net effect is that the market should shift from worrying about this week representing a dire deadline to expecting an ongoing and nuanced process. That nuanced, ongoing process is not as good for interest rates as the panic that preceded it. That means there's a legitimate risk that rate momentum is higher until and unless some economic or political event comes along to make a case to the contrary. Loan Originator
Categories: Mortgage News

Mortgage Rates Unchanged to Slightly Lower

Mortgage Rate News - Thu, 05/09/2019 - 16:51
Mortgage rates were just slightly lower on average today with some lenders flat and others distinctly lower. The discrepancy is due to the timing of yesterday's market movements and the corresponding lender reactions. Some lenders saw enough weakness to reprice for the worse before the end of the day. Others just let it ride. Those who repriced were able to drop rates back in line with yesterday morning's rates today. Those who didn't reprice just remained in the same territory, making this the 4th straight day with very little change despite a more pronounced move lower in 10yr Treasury yields. Financial markets continue hanging on every headline pertaining to the trade war. In general, news that makes a deal seem less likely is good for rates while news that increases the odds of a deal pushes
Categories: Mortgage News

Mortgage Rates Sideways to Slightly Higher

Mortgage Rate News - Wed, 05/08/2019 - 17:23
Mortgage rates began the day in decent shape after more trade war drama courtesy of a Reuters story overnight. In general, trade war drama pushes stock prices and bond yields (aka "rates") lower. But as we discussed yesterday, mortgage rates hadn't been able to benefit from that drama nearly as much as US Treasuries (the benchmark/yard-stick against which all other US interest rates are compared). In fact, they were very close to unchanged even though Treasuries were making a case for a nice move lower. It looked like that might change this morning as Treasury yields continued lower and the bonds underlying mortgages managed to improve modestly. Indeed, a few lenders did offer rates that were just slightly better than yesterday, but they were counterbalanced by just as many lenders on the other
Categories: Mortgage News

Mortgage Rates Stay Sideways Despite Bond Market Gains

Mortgage Rate News - Tue, 05/07/2019 - 18:15
Mortgage rates didn't move much today, if at all. This is confounding to all those who have watched rates against the backdrop of 10yr Treasury yields (and especially those who don't qualify their view that "mortgage rates follow the 10yr Treasury yield." Indeed, such a view must always be qualified with a word like "generally" or "typically." Today offers proof with 10yr yields significantly lower (more than 0.05%) whereas the average mortgage lender is unchanged. What's up with this? It is true that the bond market does more than anything to dictate mortgage rate movement. While 10yr Treasuries tend to correlate very well with the bonds that underlie mortgages, that correlation can periodically break down. When we look at actual mortgage-backed securities (MBS), we see they didn't fare nearly
Categories: Mortgage News

Lowest Mortgage Rates in a Month

Mortgage Rate News - Mon, 05/06/2019 - 17:13
Mortgage rates dropped noticeably this morning as financial markets opened sharply changed from Friday's latest levels thanks to Trump trade tweets over the weekend. The stock market dropped to its lowest levels in several weeks before bouncing back as the day progressed. As money flew out of stocks, it found a safe haven in the bond market. Mortgage rates are most directly affected by the bond market, and when demand for bonds increases, rates fall. The average lender was offering its best rates in roughly a month this morning. You'd have to go back to April 10th to see anything lower. And there were multiple lenders offering their lowest rates since April 1st. Rates will remain susceptible to trade-related headlines throughout the week as there isn't much else on the calendar of events (at
Categories: Mortgage News

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