Rates Still Flat at 8-Month Lows
Mortgage rates were steady to slightly lower today, depending on the lender. Underlying financial markets continue moving in a narrow range--something that's not uncommon for the first few weeks of the summer. It's that market movement that can result in mortgage lenders issuing mid-day reprices. The more volatile and the bigger the moves, the more likely lenders are to reprice. Today saw zero reprices.
Rates may have risen this morning were it not for weaker economic data. In general, weaker data tends to drive demand for the safe-haven of the bond market (which results in lower rates). This morning's Durable Goods data was noticeably weaker, and bonds improved immediately following its release at 8:30am. Though the improvement in markets was modest, it meant that most lenders were looking at bond prices that were at least as good as last Friday's.
Despite today's relative lack of change, the potential for movement is generally higher heading into the rest of the week. Risk-averse borrowers should consider that we're effectively at the lowest rates in more than 8 months. Risk-tolerant borrowers should simply make sure they have a stop-loss in place (in terms of how much rates could rise before locking at a loss) and a game plan established with their loan originator.
Loan Originator Perspectives
It must be summer, as bond markets continued slumbering, with rates virtually unchanged today. The rest of the week MAY bring some minor pricing improvements due to month end demand, but hard to hope for much more than that. If you're floating, have realistic goals for your pricing; it's unlikely we'll see rates move substantially before the end of next week (if then). I'm not in a big hurry to lock new loans, particularly those closing in August. - Ted Rood, Senior Originator
Today's Most Prevalent Rates
Ongoing Lock/Float Considerations