Mortgage rates moved modestly higher today, but remain very close to the lowest levels in nearly a month.  The underlying bond market (which dictates rates) has been somewhat volatile this week on a combination of trade-related headlines and comments from Fed Chair Powell.  Traders also have an eye on recent market trends in conjunction with this week's bond market auctions.

All of the above have added up to plenty of back and forth movement, but no sustained trend in one direction or the other.  Even then, we're not talking about huge swings for the average mortgage lender.  Most prospective borrowers would barely see a detectable difference from one day to the next.  Eventually, that will start to change when the next bout of momentum sets in.

As for the reason that mortgage rates haven't felt too many ill effects from bond market volatility?  It has to do with the difference between US Treasuries (the "vanilla" of the US bond market) and the bonds that are specific to the mortgage market (MBS or 'mortgage-backed securities').  Long story short, MBS haven't been able to improve nearly as quickly as Treasuries as rates have fallen over the past 2 months, but the saving grace is that MBS don't tend to lose ground as quickly when Treasuries are having a bad day.  Today was one of those days!

Loan Originator Perspective

Bonds continue yesterday's small regression, as Fed Minutes and Tariff Talks weighed on traders' minds.  Tomorrow brings CPI data, which carries more weight than most econ data.  I am still locking applications closing within 45 days, for all but the most risk-craving clients.  -Ted Rood, Senior Originator

Today's Most Prevalent Rates

  • 30YR FIXED -3.625%
  • FHA/VA - 3.375%
  • 15 YEAR FIXED - 3.375% 

Ongoing Lock/Float Considerations 


