Mortgage Rates at 4 Month Highs. More Volatility Ahead

Mortgage rates rates moved moderately higher today, and while that leaves the average 30yr fixed rate only slightly higher than it was on Tuesday morning (7.09 vs 7.08), it's also the highest rate in almost exactly 4 months. In a break from recent norms, the bond market didn't take cues from data or election positioning. Instead, it was a massive move in European bond markets (UK specifically) that spilled over to the U.S. in the morning hours. Once European markets were closed for the day, US bond markets improved and many mortgage lenders were able to offer token improvements in mortgage rates. Bonds, which dictate mortgage rates, were ultimately able to log a fairly flat performance versus yesterday. That's the second time this week they've been able to show some signs of resilience, but neither attempt has been very impressive. The lack of conviction isn't surprising given the high stakes events on the horizon. Tomorrow's jobs report could easily send rates sharply higher or lower. Next week's election results and Fed announcement represent similar risks (or opportunities). There's no way to know if these high stakes events will be good or bad for rates--only that the potential reaction is huge. NOTE: 7.09% is quite a bit higher than what you may see in other news stories about mortgage rates today. That would be due to the overreliance on Freddie Mac's weekly rate survey which is still getting caught up with the day to day reality.
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! "