|Mortgage Rates Aren’t Really Moving
August 31, 2018
Mortgage rates caught a break to end a week that was otherwise spent moving higher. Lenders were ultimately able to offer modest improvements that got Friday’s levels back in line with Monday’s.
The catch is that Monday’s rates were still noticeably higher than those seen at the end of the previous week.
The other catch is that “rates” as we tend to think about them actually aren’t moving at all! Rather, it’s the upfront costs (or credits) tied to whatever rate you’re being quoted. These upfront costs allow for finer tuning than the typical .125% gap between mortgage rate offerings.
Monday is a bank holiday. Virtually every mortgage lender will be closed, and unable to process rate lock requests. Lenders will not be updating rate sheets until Tuesday.
-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, August 24, 2018 : 4.63% (+0.01%)
Mortgage rates began the day slightly higher. In fact, for several lenders, it was the biggest day-over-day move higher in more than 2 weeks. The key word here is “was.” Things quickly changed in the mid-morning hours after Fed Chair Jerome Powell delivered his opening address at the Jackson Hole Symposium.
More detail: “Mortgage Rates Edge Higher, Then Lower”
Monday, August 27, 2018 : 4.63% (+0.00%)
Mortgage rates moved higher for some lenders and lower for others, depending on how that particular lender adjusted their rate sheets on Friday afternoon. While the bonds that underlie mortgage rates are moving constantly throughout the day, lenders want to see a certain amount of movement in any given direction before they go to the trouble of adjusting their mortgage rate offerings. Friday began with weaker bonds. Consequently the first mortgage rate sheets of the day were worse than Thursday’s (i.e. rates were higher). But bonds improved throughout the day–just enough for a handful of lenders to adjust rates lower.
More detail: “Mortgage Rates Higher (or Lower) Depending on Lender”
Tuesday, August 28, 2018 : 4.65% (+0.02%)
Mortgage rates rose again today–this time more noticeably than yesterday–bringing them to the highest levels in more than 2 weeks. For most, however, that sounds a lot worse than it actually is. In fact, the interest rate at the top of a loan quote has a good chance of being the exact same as the any other time during the past 2 weeks. How does that work?!
More detail: “Mortgage Rates Highest in More Than 2 Weeks”
Wednesday, August 29, 2018 : 4.66% (+0.01%)
Mortgage rates were just slightly higher again today, keeping them in line with the highest levels in about 3 weeks. The same caveat applies: we’re talking about “effective rates” (which factor in upfront lender costs) as opposed to “note rates” (the actual interest rate that most of us have in mind when discussing mortgage rates). In other words, most prospective borrowers are seeing the same old rate on any given day over the past 3 weeks, but the overall cost of financing, on average, would be highest today.
More detail: “Mortgage Rates Edge Higher Again”
Thursday, August 30, 2018 : 4.66% (+0.00%)
Mortgage rates didn’t move at all, again today. There really hasn’t been any meaningful movement for more than 3 weeks. The same thing happened from late June through mid July. And if we broaden our definition of “sideways” just a bit, we can legitimately fit most of 2018 into the same conversation. Just about the only thing that’s interesting about recent rate movement is that it continues to keep us generally closer to the highest levels in 7 years.
More detail: “Mortgage Rates: If You Like Boring, You're in Luck!”
Friday, August 31, 2018 : 4.65% (-0.01%)
Mortgage rates caught a break to end a week that was otherwise spent moving higher. Although we did see a bit of improvement in underlying bond markets yesterday, lenders were still getting rate sheets caught up with Wednesday afternoon’s bond market weakness. As such, we were left with a decent trading day but no improvement in rates.
More detail: “Mortgage Rates End Week Near Best Levels”