Mortgage Reports

Mortgage Rates Newsletter - Market Analysis

Daily Mortgage Rates Update Archive Description

Mortgage rates fell again for the second straight day--something that has only happened a few other times so far this year. On an even brighter note, this was the first week of 2018 where the average lender ended the week offering rates that were at least as good as those seen at the end of the previous week. In most cases, today's rates are right in line with those seen last Friday. For the average lender, that means conventional 30yr fixed rates of 4.5 to 4.625% on top tier scenarios. The same scenarios were seeing quotes of 3.875-4.0% at the beginning of the year. As we discussed yesterday, "good days" for mortgage rates need some context at the moment. Yesterday was a good day too, but it happened to follow the worst day in more than 4 years (in terms of outright levels). In general, as
Posted: February 23, 2018, 10:32 pm
Mortgage rates fell modestly today as underlying bond markets experienced a rare absence of volatility. Rather than view this as some sort of turning point for what has been a fairly relentless march to higher ground, these days are best seen as periodic corrections/consolidations to the prevailing trend. They are normal features of such trends and they've all been "false positives" so far in 2018 when it comes to identifying an opportunity to get more optimistic about rates moving lower. Bottom line: today is merely the day after hitting the highest rates in more than 4 years. We'd need to see a whole lot more than one day of modest gains before anything other than a defensive, lock-biased stance makes sense for prospective mortgage borrowers. Loan Originator Perspective Rates improved slightly
Posted: February 22, 2018, 10:26 pm
Mortgage rates continued higher today following the release of the Minutes from the Federal Reserve's (aka "The Fed") most recent policy meeting. The Fed was slightly more upbeat than markets expected, saying that most members agreed that a stronger economy increased the likelihood of further rate hikes. Although the Fed Funds Rate doesn't directly dictate mortgage rates, there is plenty of long-term correlation. Because the Fed only meets 8 times a year to adjust rates (and rarely adjusts rates on all 8 occasions), bond markets (which include mortgage rates) are constantly adjusting to what the Fed will probably do in the future. Of course, it could be argued that both the Fed AND financial markets are simply adjusting to the state of the economy, inflation, etc., but that's more of a philosophical
Posted: February 21, 2018, 11:28 pm
Mortgage rates moved back up today after ending last week on a positive note. Improvements in rates have been uncommon so far in 2018. In fact, we haven't seen more than 2 consecutive days without a move higher. In that sense, today keeps the prevailing trend intact. If there's a saving grace, it's that rates didn't quite rise back above last week's highs. If there's a downside (whatever the opposite of a "saving grace" might be...), it's that rates remain in line with the highest levels in more than 4 years. While we COULD see some relief at some point, there's no telling if that would be a legitimate attempt at a ceiling or merely be a temporary correction before another move higher. Either way, betting on the emergence of a ceiling (via floating one's loan as opposed to locking) hasn't been
Posted: February 20, 2018, 11:12 pm
Financial markets in the US will be closed for President's Day on Monday. Thus, mortgage lenders will not be open, nor will they be accepting locks. Given that mortgage rates took the road less traveled in 2018 and actually moved lower, it's worth having a chat with your mortgage professional if you have a loan in process. Of course, many of you may not be reading this until after the lock window has passed for today, so let's take a look at next week's risks and opportunities . The biggest risk is the same one that's been with us all year. Simply put, rates have been trending higher in a steady but highly convicted fashion, quickly adding a half a percentage point or more to the average 30yr fixed rate quote. As we've been saying all year, it doesn't make sense to bet against that trend until
Posted: February 16, 2018, 9:13 pm