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Mortgage News Letter


Mortgage News Daily

Mortgage Rates Behind the Curve For 2nd Straight Day
Fri, 20 Jul 2018 22:44:56 GMT

Mortgage rates improved today but it was largely a byproduct of yesterday's market movement that didn't make it onto lenders' rate sheets at the time. Mortgage lenders set rates based on trading levels in mortgage backed securities or MBS (the bonds that groups of mortgages turn into when they're traded among financial firms on the secondary market). None of the esoterica above is too important as long as you understand that there's moment to moment trading in the bond market providing the primary consideration for mortgage lenders setting rates. If that market moves enough in the middle of the day, lenders may make mid-day adjustments to rate sheets. Yesterday saw almost enough of an improvement for lenders to offer lower rates. As such, today's morning rate sheets were better than yesterday ...read more

Mortgage Rates Back to Flat After Starting Higher
Thu, 19 Jul 2018 19:31:26 GMT

Mortgage rates had a scare today, as they began the day at their highest levels of the month (depending on the lender) only to fall back in line with yesterday (or better!). The reason for the back-and-forth movement has to do with esoteric behind-the-scenes stuff in the bond market. I should be able to make it tangible enough for you, so let's give it a shot. Bonds are the backbone for all interest rates. The bonds that underlie mortgages tend to move almost exactly like 10yr Treasury yields. Treasuries are a great case study to follow when it comes to rates because they are abundant, more actively traded, and essentially risk-free. That risk-free part is important because it means Treasuries can be used as a benchmark to assess the value of other bonds that aren't guaranteed by the full faith ...read more

Mortgage Rates Flat Again, Despite Modest Market Weakness
Wed, 18 Jul 2018 21:43:34 GMT

Mortgage rates were flat again today, further prolonging a trend that's been in place for weeks. During that time, we've seen modest ups and downs, but no significant changes. To put the narrowness of the range in context, the "ups and downs" are only seen in the upfront costs associated with any given mortgage rate. Rates themselves haven't changed for the average loan scenario. Today's absence of change belies market movement to some extent. The bonds that underlie mortgage rates weakened enough through the course of the day that mortgage lenders were nearly justified in a mid-day rate sheet adjustment (for the worse). When this happens (i.e. when bonds weaken, but not quite by enough to prompt mid-day changes), the implication is that tomorrow starts out at a slight disadvantage . In other ...read more

Mortgage Rates Edge Higher
Tue, 17 Jul 2018 21:17:45 GMT

Mortgage rates fell to their lowest levels since late May as of last Friday. Today, then, would be the 2nd best day since late May. Rates edged slightly higher to begin the new week as bond markets (which underlie rates) came under modest pressure for several relatively inconsequential reasons. The net effect was a small adjustment in the upfront costs associated with prevailing rates. In other words, the actual interest rate governing your monthly mortgage payment hasn't changed in weeks, but the upfront costs tied to that rate are slightly higher for lenders today compared to last Friday. Loan Originator Perspective My clients and i continue to favor locking in once within 30 days of closing. Only loans i would consider floating would be those that can lock on a shorter time tomorrow or if ...read more

Lowest Rates Since May, But There's a Catch
Fri, 13 Jul 2018 19:54:38 GMT

Mortgage rates fell by an observable amount today-- one of the few times they've done so in recent weeks. Technically, today's average lender is offering the best we've seen since May 31st. That sounds pretty great, right?! Unfortunately, there's a fairly big catch. While today's rates are indeed the best in a month and a half, the range during that time has been so excruciatingly narrow that most prospective mortgage borrowers will find the distinction fairly meaningless. In almost all cases, the actual NOTE rate at the top of your loan quote will be the same as it has been for weeks. The only change in lenders' rate sheets is in the upfront cost associated with that rate. In other words, if you'd seen a quote of 4.75% with 0 points yesterday, today's quote would be more like 4.75% with a ...read more