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Mortgage News Letter


Mortgage News Daily

Mortgage Rates at 3-Week Lows
Wed, 19 Jul 2017 21:58:56 GMT

Mortgage rates moved lower today, despite slightly weaker underlying bond markets. This has been an ongoing phenomenon in recent days. Bonds improve, implying lower mortgage rates, but lenders wait to drop rates until bond market improvement is vetted. In the current case, yesterday's market gains remained relatively intact despite today's market losses, thus giving lenders the green light to pass the gains through to mortgage rate sheets. Although today's rates aren't appreciably lower than yesterday's, they're technically the best we've seen since June 28th. More lenders are quoting top tier conventional 30yr fixed rates of 4.0% instead of 4.125%, and some of the aggressive lenders are back down to 3.875%. If there's been an underlying reason for the hesitation on the part of lenders, the ...read more

Mortgage Rates Moderately Lower
Tue, 18 Jul 2017 20:16:35 GMT

Mortgage rates fell today, but continue to lagging behind the movements seen in underlying bond markets. Part of that has to do with the timing of bond market swings over the past few days, but lenders also simply want to see markets pick a theme and stick with it. Simply put: trading levels in bonds ultimately dictate rates, and today's trading levels suggest the lowest rates of the month. Given that today's rates are still generally in line with last Friday's, it would be fair to conclude that we'll see more improvement on lender rate sheets, even if bond markets merely hold flat tomorrow. Although we can't ever know what bond markets will do tomorrow, the fact that mortgage rates are heading into the day with a small advantage is useful knowledge. It means there's comparatively less risk ...read more

Mortgage Rates Higher Despite Friendly Market Movement
Mon, 17 Jul 2017 21:18:19 GMT

Mortgage rates are largely dictated by movements in bond markets--specifically mortgage-backed securities (MBS). When bonds improve, prices rise and investors are willing to pay more to buy loans. This results in rates moving lower. In other words, bond market improvement = lower rates. With all of that in mind, today is a bit of a paradox as the average lender is quoting slightly higher rates today, despite general improvements in bond markets. Nothing too terribly mysterious is at work here though. The inconsistency has more to do with the timing of Friday's market movements and the generally narrow range over the past four days. Specifically, bonds weakened progressively into Friday afternoon and most lenders never fully adjusted rate sheets to account for that weakness. This left the average ...read more

Mortgage Rates End Week at Best Levels
Fri, 14 Jul 2017 20:58:05 GMT

Mortgage rates are experiencing increased volatility at the end of this week, which was to-be-expected given the calendar of events and economic data. Fortunately, the volatility worked in favor of lower rates this morning after Retail Sales and a key consumer inflation report both came in lower than expected. In general, weaker economic data coincides with rates moving lower. Investors are particularly interested in inflation data at the moment as it seems to be the Fed's biggest hang-up when it comes to removing "accommodation" (a broad term that refers to the level of the Fed Funds Rate and the Fed's bond buying policies). A removal of accommodation could take the form of a Fed rate hike or a decrease in the amount of bonds the Fed is currently buying as a part of its reinvestment policy ...read more

Mortgage Rates Give Back Some of Yesterday's Gains
Thu, 13 Jul 2017 22:16:37 GMT

Mortgage rates had their first great day in several weeks yesterday, but ended up giving back some of those gains today. Bond markets that underlie interest rates took their cues from central bank statements. In Europe, unnamed officials suggested the European Central Bank (ECB) would announce a plan to decrease its bond buying in September. Because central bank bond buying puts downward pressure on rates, this sort of news puts upward pressure on rates! Granted, we're talking about limited comments from the other side of the world. As such, the impact on mortgage rates in the US is limited, but there was impact nonetheless. Bond markets also took some damage from Fed Chair Yellen's 2nd day testifying before congress. This time around, she showed a bit more conviction on the topic of removing ...read more