|Mortgage Rates Yawn at Fed Announcement
July 28, 2017
Mortgage rates were slightly higher on the week with most of the movement happening on Tuesday AND without any overt motivation. That’s interesting considering the week’s biggest calendar event was Wednesday’s Fed Announcement.
Normally, I’d say something like “rates braced for impact ahead of the Fed Announcement,” but it just wasn’t the case. No one expected any major revelations from the Fed, nor were there any reasons for pre-Fed expectations to change on Tuesday. It was just the esoteric trading considerations that occasionally move markets amid an absence of compelling events and data.
Bond markets (which drive rates) improved after the Fed, but mortgage lenders were slow to pass along those improvements. Wednesday, Thursday, and Friday’s rates were all very similar, and the week’s average rate was right in the middle of July’s range.
Next week brings important inflation data as well as the big jobs report on Friday–events that have more “surprise” potential than the Fed Announcement did this week.
–Matt Graham, Mortgage News Daily
30 Year Fixed Rate Mortgage
Week in Review
Rates shown below are based on the 30 Year Fixed Rate Mortgage
Friday, July 21, 2017 : 4.00% (-0.03%)
Mortgage rates moved lower today, setting yet another new low for the month of July. For the past 2 weeks, rates have been pushing back against a fairly abrupt spike that took place heading into the month. Concerns over the European Central Bank’s (ECB’s) bond buying plans sparked the move higher, but those concerns were officially put to rest as of yesterday.
More detail: “Mortgage Rates Lowest in July”
Monday, July 24, 2017 : 4.00% (+0.00%)
Mortgage rates held steady today, which leaves them in line with the lowest levels in July. In underlying bond markets (bond movement directly impacts lenders’ rate offerings), it was an exceptionally quiet day–especially for mortgage-related bonds.
More detail: “Rates Begin Week Unchanged at July's Lows”
Tuesday, July 25, 2017 : 4.06% (+0.06%)
Mortgage rates moved abruptly highertoday, erasing the improvement seen last week. An entire week’s worth of movement may or may not be worth stressing out about depending on your perspective. On one hand, we’re only talking about a change of roughly 0.06% in terms of the “effective rate” on the average 30yr fixed loan. That’ll cost you about $7/month on a $200k loan.
On the other hand, last week was the best in more than 2 months. While erasing those gains might not be dramatic in terms of outright financial impact, it could signal a shift in the overall trend.
More detail: “Mortgage Rates Spike, Erasing Last Week's Gains”
Wednesday, July 26, 2017 : 4.05% (-0.01%)
Mortgage rates were steady to slightly lower today, despite fairly substantial movement in underlying bond markets. Bond prices ultimately do more to inform mortgage rates than anything else. Prices moved higher today by an amount that would typically result in effective rates falling 0.03-0.05% depending on the lender. But as it stands, the average lender is only 0.01% lower than yesterday’s latest offerings.
More detail: “Mortgage Rates Steady to Slightly Lower After Fed”
Thursday, July 27, 2017 : 4.04% (-0.01%)
Mortgage rates were mixed today, depending on the lender, but generally held fairly close to yesterday’s levels. All this in spite of bond market weakness (which normally pushes rates higher). The discrepancy can be chalked up to a delay between market movements and lenders’ reactions that’s been increasingly prevalent during the summer months. In other words, lenders still hadn’t fully responded to yesterday’s bond market strength and were thus able to absorb today’s weakness in many cases.
More detail: “Mortgage Rates Not Exactly Lower This Week”
Friday, July 28, 2017 : 4.04% (+0.00%)
Mortgage rates were generally flat today, despite improvements in underlying bond markets. Although several lenders did offer price improvements throughout the course of the day, the improvements were generally “token” in nature and did little to alter the sense of paralysis in the bigger picture.
More detail: “Mortgage Rates Starting to Look Paralyzed”