|Mortgage Rates Score Important Victory
April 29, 2016
Mortgage Rates moved lower this week, scoring an important victory against the trends set in motion early this month. Case in point, last week saw rates move higher at their fastest pace in 6 months, so any reprieve is welcome news.
The reprieve in question isn’t massive, but again, it has great timing. 30yr fixed rates for top tier scenarios were just in the process of moving up to 3.75% when this week’s much-anticipated Fed Announcement came out.
Many thought the Fed would use this opportunity to foreshadow a June rate hike. When the didn’t, rates began improving quickly. Most of the gains were seen on Wednesday, but Thursday and Friday continued the healing, ultimately leaving 3.625% intact as the most prevalent conventional quote.
Next week will be critical in confirming the bigger-picture trend as it’s the start of a new month as well as a big week for economic data.
– Matt Graham, Chief of Operations, Mortgage News Daily
30 Year Fixed Rate Mortgage
Week in Review
Rates shown below are based on the 30 Year Fixed Rate Mortgage
Friday, April 22, 2016 : 3.75% (+0.02%)
Mortgage rates continued higher today, solidifying this week as the worst one in quite a while. Not since the first week in November have rates risen so quickly. That said, the volatility might be a bit easier to stomach this time around–especially for those who haven’t been able to lock a rate yet. Reason being: the total move amounts to about an eighth of a percent.
More detail: “Worst Week For Mortgage Rates Since November”
Monday, April 25, 2016 : 3.75% (+0.00%)
Mortgage rates didn’t move much, if at all, today. That’s not exactly what we want to see right now considering they’re as high as they’ve been since the 2nd half of March. The average lender has now moved up from quoting conventional 30yr fixed rates of 3.625% to 3.75% on top tier scenarios. Earlier this month, stronger lenders were as low as 3.5%. With no meaningful motivation in terms of economic data or news, today’s lack of mortgage rate movement isn’t too surprising. Later this week, it will be very hard for rates to avoid motivation.
More detail: “Mortgage Rates Begin Week at Recent Highs”
Tuesday, April 26, 2016 : 3.75% (+0.00%)
Mortgage rates remained in line with their highest levels in a month for the third straight day. The average lender is now quoting conventional 30yr fixed rates of 3.75% on top tier scenarios. Earlier this month, stronger lenders were as low as 3.5%, and the average had been 3.625% until late last week.
Unlike yesterday, there were several economic reports today. Frustratingly enough, the two biggest reports were both weaker–something that would normally push rates lower–but investors opted instead to brace for the unknown impact from tomorrow’s Fed Announcement. The Fed is not expected to hike rates at this meeting, but they may use it as a venue to telegraph a June rate hike (much like they used the October Announcement to presage December’s hike). Either way, market participants will likely be in a betting mood again by the end of the week. That said, those bets could go either direction. The only high probability bet is that rate movement will be much more volatile in the second half of the week.
More detail: “Mortgage Rates Sideways ahead of Fed”
Wednesday, April 27, 2016 : 3.73% (-0.02%)
Mortgage rates caught a break today! After having moved sideways or higher for the past 7 days, and spending the last 3 at the highest levels in more than a month, rates finally moved lower, albeit modestly. The friendly push came from the Federal Reserve after it released its monetary policy announcement this afternoon.
More detail: “Mortgage Rates Helped by Fed Announcement”
Thursday, April 28, 2016 : 3.68% (-0.05%)
Mortgage rates continued lower for a second straight day, ultimately making it back to levels not seen since last Tuesday. Today’s improvements are partly an extension of yesterday’s reaction to the Fed Announcement, but also acknowledge the end of this week’s Treasury auction process. This often involves a slight artificial pressure toward higher yields beginning on Tuesday with the pressure being released after the week’s last auction on Thursday afternoon.
More detail: “Mortgage Rates Back Down to Last Week's Range”
Friday, April 29, 2016 : 3.67% (-0.01%)
Mortgage rates moved just slightly lower in most cases, to end the week at the best levels since April 19th. Mor importantly, the past 3 days of improvements go a long way toward defeating a worriesome trend toward higher rates that began in early April. With the recent gains, the average conventional 30yr fixed rate is back down to 3.625% on top tier scenarios after having briefly moved up to 3.75%. That said, keep in mind that rate sheet offerings have varied more widely than normal from lender to lender due to recent market volatility.
More detail: “Mortgage Rates End Week at Lows”