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Mortgage Rates Continue Modestly Higher

by Trevor Sines
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 […]

Mortgage Rates Rise Modestly From 2017 Lows

by Trevor Sines
Mortgage ratesrose modestly todayafter spending 2 days at the best levels in nearly 8 months. Financial markets were tuned in to several key events with the power to cause volatility for rates today. Of these, the Senate testimony of former FBI Director Comey probably had the biggest spotlight. Rates were already coming under some pressure yesterday as Comey's prepared remarks were released, but bond markets (which dictate rates) didn't move quite enough for most lenders to adjust rate sheets. ...(read more) Forward this article via email:Send a copy of this story to someone you know that may want to read […]

Rates Hold 2017 Lows Despite Market Weakness

by Trevor Sines
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. […]

Mortgage Rates Unexpectedly Fall to 2017 Lows (Again)

by Trevor Sines
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 […]

Mortgage Rates Just Off 7-Month Lows

by Trevor Sines
Mortgage rateswere modestly highertoday after hitting the lowest levels since early November at the end of last week. Along with mid-April, this is the second time rates have been in this territory in more than 7 months. Most prospective borrowers will see very little--if any difference between Friday's rate quotes and today's. Certainly, the NOTE rate itself will be unchanged, with any deterioration limited to the upfront costs that impact the EFFECTIVE rate (similar to APR). With rates being driven by financial markets and with investors generally on edge ahead of Thursday's congressional testimony from former FBI Director Comey, it […]

Rates Fall to 2017 Lows After Jobs Report

by Trevor Sines
Mortgage ratesmoved convincingly lowertoday following weaker-than-expected employment data from the Labor Department. The big "jobs report" showed only 138k new nonfarm payrolls (the report's headline job creation metric) in May, and a negatively revised 174k in April (down from 211k). March was revised lower as well, painting a suddenly gloomier picture relative to the strong, stable job growth reported since roughly 2011. It's not that the current numbers are worse than they were during some of the rough patches over the last 6 years, just that we're not seeing as much resilience. Payroll growth has now come in under 250k […]

Rates Edge Higher Ahead of Jobs Report

by Trevor Sines
Mortgage ratesgave backyesterday's gains this morning following a stronger-than-expected employment report from ADP. While this is not the week's biggest jobs report, investors view it as one of several early indicators of the official Employment Situation (the big jobs report that comes out tomorrow morning). In general, stronger economic data (i.e. more job growth) tends to push rates higher and vice versa. In the bigger picture, today's move higher in rates will scarcely be detectable for most borrowers. In nearly every case, today's rate quote would be the same as yesterday's with the possible exception of slightly higher upfront costs […]

Rates Near 2-Week Lows as Risks Increase

by Trevor Sines
Mortgage ratesimproved modestly today as lenders caught up with yesterday afternoon's market movements. Most lenders will issue mid-day changes in rate sheets ("reprices") when bond markets make a big enough move in one direction or the other during the day. Sometimes, this movement doesn't happen until the afternoon hours (which was the case yesterday). A handful of lenders responded with rate sheet improvements, but most simply waited for this morning. The net improvement isn't huge, by any means. In fact, most prospective borrowers may see the exact same quote as yesterday. But on average, the combination of rates and upfront […]

Mortgage Rates Sideways Near Long-Term Lows

by Trevor Sines
Mortgage ratesremained relatively unchanged again today. This continues the sideways trend leading into Memorial Day weekend. As the current week progresses, we can expect to see volatility increase thanks to the presence of more significant economic data. In general, bond markets (which underlie mortgage and other rates) react to strength or weakness in economic data. The more important the report and the bigger the margin by which it misses or exceeds expectations, the more movement is implied in bond markets (and thus "rates"). ...(read more) Forward this article via email:Send a copy of this story to someone you know that […]

Mortgage Rates Coast Into Extended Weekend

by Trevor Sines
Mortgage ratesdidn't move muchtoday. Lenders that made detectable adjustments generally did so in a moderately positive direction. While this isn't remotely enough to make a difference in the actual NOTE rate on a mortgage quote, it could make for microscopically lower upfront costs (thereby affecting the "effective" rate). As far as note rates are concerned, most lenders continue quoting conventional 30yr fixed rates in a range centered on 4.0%. In terms of economic data--something that typically moves bond markets (and thus rates)--there were two key reports this morning. The 1st revision of Q1 GDP was slightly stronger than expected, rising […]