|Another Solid Week For Mortgage Rates
March 29, 2018
Mortgage rates are starting to get excited by what they’re seeing elsewhere in the bond market. Specifically, US Treasury yields closed at their lowest yields in nearly 2 months this week. Treasury yields tend to correlated strongly with mortgage rates although the latter are lagging the current move.
If broader bond markets (Treasuries, mortgage-backed securities, etc) continue to improve at the beginning of next week, we should see lenders pass along some of the best rates in months.
Keep in mind, that’s a BIG “if.” 2018 is still a year to take advantage of small opportunities when it comes to rates–as opposed to holding out for bigger opportunities.
-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
Thursday, March 22, 2018 : 4.54% (-0.03%)
Mortgage rates continued lower today on a combination of global reaction to yesterday’s Fed Announcement and apprehension over new tariffs on China. The Fed Announcement was positive due to Jerome Powell’s press conference–an event that happens late enough in the day that overseas markets don’t really have a chance to react. Because of that, domestic markets sometimes hold back a little until they can feel out the global reaction.
More detail: “Mortgage Rates Back at This Week's Lows”
Friday, March 23, 2018 : 4.55% (+0.01%)
Mortgage rates were just barely higher in many cases today, although underlying bond markets recovered enough ground by the afternoon to suggest Monday’s rates will recoup those losses. The only catch is that other factors can have an effect on bonds between now and then. If bond markets are weaker by Monday morning, this afternoon’s strength will be overshadowed. Bottom line here: rates will start Monday with a very slight advantage “all things being equal.” Incidentally, the reason we don’t see this advantage today is that the bond market gains were small enough and happened late enough in the day that mortgage lenders didn’t update their rate sheets.
More detail: “Mortgage Rates Sideways to Slightly Higher Despite Stock Rout”
Monday, March 26, 2018 : 4.56% (+0.01%)
Mortgage rates moved sideways to slightly higher today, keeping them in an exceptionally narrow range that’s persisted for the entire month of March. As of last Thursday, rates looked like they might make an attempt to challenge the lower boundary of that range, but they quickly backed off (or backed “up” as the case may be). Friday and today have seen a fairly steady move back toward the middle of March’s range.
More detail: “Mortgage Rates Slightly Higher to Begin Shortened Week”
Tuesday, March 27, 2018 : 4.52% (-0.04%)
As of yesterday, it looked like mortgage rates would be more interested in staying in a narrow, sideways range for the holiday-shortened Spring Break/Good Friday trading week. Today, financial markets gave us a reminder about how much reality can differ from apparently probable outcomes. Fortunately, the surprises work in the favor of the mortgage market today as rates are sharply lower (at least in the context of the recent range, which has been extremely narrow).
More detail: “Mortgage Rates Quickly Down to 2 Week Lows”
Wednesday, March 28, 2018 : 4.51% (-0.01%)
Mortgage rates were sideways to slightly lower today, keeping/bringing them in line with the lowest levels in roughly 2 weeks (depending on the lender). Interest rates in the broader bond market were slightly better off, with 10yr Treasury yields falling to the best levels since early February.
More detail: “Mortgage Rates at 2-Week Lows”
Thursday, March 29, 2018 : 4.51% (+0.00%)
Mortgage rates were generally unchanged today, although a few lenders offered slight improvements. This stands in contrast to the noticeable improvements in underlying bond markets. As we discussed yesterday, Treasury yields are leading the charge toward lower rates, and while the bonds that underlie mortgages are definitely lagging that move, they’re improving nonetheless. But again, you wouldn’t really know it based on today’s rate sheets.
More detail: “Mortgage Rates Unchanged Despite Market Improvements”