Mortgage Rates Barely Budge For 3rd Straight Day, But That Should Change Tomorrow

Today's mortgage rates were fairly close to yesterday's at the average lender for the 3rd business day in a row. Friday was the last day with any substantial movement when rates spiked following the upbeat jobs report. Since then, the average lender has only moved by 0.01% on each of the past 2 days. The absence of movement made better sense yesterday. Rates are based on trading levels in the bond market and bonds ended the day very close to Friday's levels. It's a bit harder to reconcile today given that bonds did quite well--especially after the auction of 10yr Treasury notes at 1pm Eastern time. Mortgage rates are often discussed against a benchmark of a 10yr Treasury yield. The two tend to move in the same direction by generally similar amounts. 10yr Treasury yields are 0.07% lower today and the average mortgage rate is only 0.01% lower at the time of this writing. What's up with that? First off, Treasuries tend to see bigger upsides and downsides when bonds are reacting to a Treasury auction. Timing is also a factor with the auction happening late in the day. Several mortgage lenders have already revised their initial rates lower in response, but the improvements won't be captured in our rate index until tomorrow. That brings us to another issue: tomorrow is a potentially crazy day for better or worse. Well before mortgage lenders publish rates for the day, the Consumer Price Index (CPI) will be released for the month of May. It has more power than any other economic report to push rates higher or lower, depending on the outcome. Anticipation of that volatility could also have mortgage lenders feeling less like making any last minute changes.
Categories
Recent Posts

Rates End Week at Best Levels; Next Week Could be Huge

30yr Fixed Rates Officially Back to 6.50%

Mortgage Rates Hit Another 2025 Low

Mortgage Rates Back in Line With Long-Term Lows

Cruel Summer: Frustration Unites Buyers, Sellers, and Builders in a Stalled U.S. Housing Market

Mortgage Rates Edge Slightly Higher From Long-Term Lows

Realtor.com® Appoints Janakiraman Karthikeyan as Chief Technology Officer

Lowest Rates of The Year (Barely) After Powell Speech

Mortgage Rates Inch Higher Yet Again

Only 28% of Homes on the Market are Affordable for a Typical Household
"My job is to find and attract mastery-based agents to the office, protect the culture, and make sure everyone is happy! "