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Mortgage News Letter


Mortgage News Daily

Mortgage Rates Slightly Higher Today
Thu, 21 Feb 2019 21:48:15 GMT

Mortgage rates may be close to their lowest levels in more than a year, but they were slightly higher versus yesterday. Yesterday's rates were close enough to 1-year lows that no one would take exception with the claim. That said, rates on January 31st were slightly lower for most lenders. Why all the fuss? No fuss , per se. It's just that many mainstream news outlets are running stories today about the "lowest rates in more than a year" due to Freddie Mac's weekly mortgage rates survey. Indeed, if we're just comparing the Monday/Tuesday 30yr fixed rate averages (which is essentially what Freddie's survey does), this week definitely qualifies as having the lowest rates in a year. As is always the case with delayed data, by the time you read about it, the story has often changed. None of the ...read more

Mortgage Rates Near Long-Term Lows After Fed Minutes
Wed, 20 Feb 2019 22:03:33 GMT

Mortgage rates finally broke from their recent "back-and-forth" pattern of the past 7 business days and moved lower for the 2nd day in a row . Although today's big-ticket event for financial markets was the 2pm release of the Fed's most recent meeting minutes (or was it Samsung's foldable phone announcement?), rates were already lower well in advance of the Fed. This feat was accomplished simply because the bond market didn't change much from yesterday, and the fact that mortgage lenders didn't fully adjust rates to reflect bond market levels yesterday. To put that more simply: rates were good yesterday. Bond markets improved yesterday, but not enough for mortgage lenders to lower rates in the afternoon. Lenders need to see a certain amount of ground covered during the day in order to go to ...read more

Mortgage Rates Sticking Close to Long-Term Lows
Tue, 19 Feb 2019 22:17:23 GMT

Mortgage rates fell modestly today, making it the 7th straight business day where they've moved in the opposite direction from the previous day. This see-saw pattern is commonly seen during periods of consolidation in the bond market (which serves as the foundation for mortgages and most other interest rates). And a consolidation is often seen during times of indecision just before markets embark on their next big move higher or lower. With many uncertainties set to be resolved by mid-March, there's a good enough chance that the recent sideways momentum in rates will give way to a bigger move. There's no way to know whether that move will be toward higher or lower rates (it will likely depend on the economic data, fiscal headlines, and Fed policy updates that have yet to be announced). For ...read more

Mortgage Rates in a Holding Pattern
Fri, 15 Feb 2019 20:42:26 GMT

Mortgage rates were slightly higher today, marking the 6th day in a row where they've reversed course versus the previous day. This is the sort of behavior we see when underlying financial markets are having a hard time making up their mind (or are simply waiting for something before committing to the next big move). In the case of mortgage rates, the underlying financial market is the bond market. There are specific bonds that most directly affect mortgage rates, but they are almost always moving in the same direction as other bonds anyway. That allows us to use something like the 10yr Treasury yield to keep an eye on interest rate momentum. There we see yields locked in an increasingly narrow range since the beginning of the year. Movements inside that range aren't important to the bigger ...read more

Rates Are Better Today, But Not Back to 1-Year Lows
Thu, 14 Feb 2019 22:19:30 GMT

Mortgage rates recovered today after rising to the highest levels in a week as of yesterday. The improvement followed a much-weaker-than-expected Retail Sales report--something investors have been waiting on for nearly 2 months due to the government shutdown. Retail sales comprise an important part of economic activity, and the economy is one of the biggest considerations for interest rates. Generally speaking, economic strength pushes rates higher, all other thing being equal. Thus, the unexpectedly weak retail numbers had the opposite effect. How big was the effect? Not quite as big as most other media outlets would suggest. The discrepancy is due to the regular Thursday release of the industry's most widely-cited mortgage rate report from Freddie Mac. While that report is accurate for the ...read more