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Mortgage News Letter


Mortgage News Daily

Mortgage Rates Still Working on That Ceiling
Tue, 16 Jan 2018 21:59:46 GMT

Mortgage rates didn't move much today. Most lenders were just slightly lower/better this morning, but mid-day market weakness prompted several of them to reissue higher rates. In the bigger picture, however, the past several days represent a welcome stint of relative calm. The general trend had been toward higher rates beginning in mid-December. Granted, that general trend could continue and the past few business days could merely be a pause. But the point is, whether it's a pause or the beginning of a reversal, either would begin the same way. The important development in underlying bond markets has been resilience at the weaker (read: higher rate) levels. Using 10yr Treasury yields as a benchmark for rate in general, we'd want 2.60% to continue to act as a ceiling. The ingredient we're still ...read more

Mortgage Rates Avoid More Dire Outcomes After Inflation Report
Sat, 13 Jan 2018 01:10:30 GMT

Mortgage rates caught a break yesterday by moving lower for the first time this week. They arguably caught a break again today by not moving any higher than they did. Underlying bond markets (which drive mortgage rate changes) were rocked this morning by stronger inflation data. The important Consumer Price Index (CPI) was expected to hold steady at the same low levels that have persisted since the middle of 2017. The modest uptick in inflation sent bond yields higher and resulted in most mortgage lenders putting out noticeably higher rates this morning. Lenders don't like to put out more than one rate sheet per day if they can help it, but if markets move enough, they will "reprice." After the initial trauma, bond markets began a trend of improvement that ultimately resulted in widespread ...read more

Mortgage Rates Catch a Break With Help From Treasuries
Thu, 11 Jan 2018 21:20:17 GMT

Mortgage rates caught a break today, moving lower for the first time this week and pushing back from the highest levels since early July 2017. Like yesterday, strong demand at a Treasury auction helped US bond markets, but notably, only the longer-term maturities (10yr and 30yr bonds were the big winners). Fortunately, the bonds that underlie mortgage rates tend to correlate well with longer-term Treasuries. Economic data also played a role with a weaker reading on inflation at the producer level. Tomorrow brings the much more important reading on consumer-level inflation (via the Consumer Price Index or CPI). If CPI is similarly weak, it could steel the resolve on the part of rates to hold to recent ceilings--potentially providing a base of operations for borrowers to consider a strategy other ...read more

Mortgage Rates Remain at 6-Month Highs Despite Late Day Bounce
Thu, 11 Jan 2018 02:12:12 GMT

Mortgage rates were much higher this morning, bringing them to new 6-month highs (a dubious distinction also accomplished yesterday). Unlike yesterday, there were good and bad moments today. Bond markets (which underlie rate movement) were already starting to show signs of support this morning. Early this afternoon, a scheduled auction of 10yr Treasury Notes was met with strong demand. When demand for a bond rises relative to supply, rates fall. Mortgage rates aren't based directly on 10yr Treasuries, but there is a strong correlation between the two. The 10yr serves as an important benchmark for any longer-term interest rate in the US, so the strong auction suggested rates may attempt to find a ceiling here after a rocky start to the year. The staying power of any such ceiling remains to be ...read more

Mortgage Rates Highest in 6 Months
Tue, 09 Jan 2018 22:42:44 GMT

Mortgage rates rose again today, adding to a nasty 2-day streak that's taken the average 30 yr fixed rate an eighth of a point higher. That's an uncommonly big 2-day move, and it brings rates to their highest levels since early July 2017. Of potentially more concern is the fact that the current rate spike is making an ominous suggestion about the broader trend. Specifically, the last 3 months of 2017 saw rates consolidate in a mostly-sideways pattern. We'd been waiting for a bigger break higher or lower. Although there were some early warning signs that the breakout would be to the upside, this week has all but confirmed it. The implication is for things to get worse before they get better. Loan Originator Perspectives Bond markets' recent sell-off accelerated today, as oil prices and stocks ...read more