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Mortgage News Letter


Mortgage News Daily

Rates Move Swiftly Lower Due to New Covid Variant
Fri, 26 Nov 2021 19:55:48 GMT

Just when it looked like the current week would fizzle out on a negative note for rates, our least favorite market mover is back in the news. B.1.1.529 (designated now as "Omicron"), a new covid variant hit the market like a ton of bricks on Friday morning. 48 hours earlier, Google had never heard of it. Search interest began to ramp up on Thanksgiving Day. By Friday, it's an utterly pervasive headline. With financial markets closed for Thanksgiving, there was an abrupt reaction upon reopening for the half-day on Friday. This augmented other moves that were already in progress, like the recent decline in oil prices and the outperformance of European bonds. Both are positive indicators for US rates as long as they keep doing what they're doing. Some of the recent economic data, such as the Consumer ...read more

Highest Mortgage Rates Since April
Tue, 23 Nov 2021 21:59:22 GMT

Mortgage rates continued higher today as the bond market remained in a defensive stance for a variety of reasons. The week's scheduled Treasury auctions were among those reasons, but rates remained under pressure even after today's final auction. That means traders are still nervous about upcoming events. With markets closed on Thursday and effectively closed on Friday, the focus is on tomorrow by default. The morning's biggest potential source of volatility will be the PCE inflation data at 10am ET. Then in the afternoon, the Fed releases the minutes from its most recent meeting. There is some speculation that the minutes will include a more robust discussion about hiking rates in 2022--something that hadn't really been on the radar until recently. Today's bond market movement pushed rates ...read more

Mortgage Rates Under Pressure After Powell Nomination and Bond Auctions
Mon, 22 Nov 2021 22:24:29 GMT

Mortgage rates began the new week on a bad note with the average lender full erasing the improvement seen on Friday. This leaves many lenders at their highest levels since April, but in those cases, it should be noted that today's rates are extremely close to those seen in late October. In other words, we're essentially back in line with the highest levels in more than 7 months. In outright terms, the average lender was closer to 3.125% on a top tier conventional 30yr fixed scenario. Today, they'd be closer to 3.25% . The rate spike was driven by bond market weakness. This will almost always be the case for any rate spike as rates are primarily determined by the bond market. Bonds were reacting to a combination of challenges. The first was the re-nomination of Jerome Powell as the Chair of ...read more

Mortgage Rates Catch a Break
Wed, 17 Nov 2021 21:54:50 GMT

Mortgage rates finally caught a break after spending the past six business days moving higher at a faster-than-normal pace. During that time, the average lender's conventional 30yr fixed rates increased by 0.125-0.25%, depending on the loan scenario. That's a big move for just over a week, even though it leaves the going rate in the low 3% range. Today's improvement came courtesy of behind-the-scenes developments in the bond market. In a way, mortgage rates had been caught in the crossfire this week as many companies issued new corporate debt. That issuance process creates volatility for the bond market, and thus, mortgage rates. The saving grace is that some of the upward pressure on rates that can occur early in the issuance process is often reversed when the corporate bonds are ultimately ...read more

Mortgage Rates Highest in More Than 3 Weeks
Tue, 16 Nov 2021 21:44:47 GMT

Mortgage rates continued higher again today, despite a fairly flat performance in the bond market. Specifically, the mortgage-backed securities (MBS) that directly influence mortgage rates were almost perfectly flat on the day. Normally, this would suggest very little change to the average lender's rates. Unfortunately, the average lender still had to get caught up with yesterday's market losses. As such, rates were higher right out of the gate this morning--the highest in more than 3 weeks. Today's damage might not have been as noticeable had it not been for this morning's economic data. The Census Bureau reported October's Retail Sales rose by 1.7%, making it the strongest month in several years apart from the months associated with the bulk of covid stimulus payments. In general, strong ...read more