|Mortgage Rates Surge Lower
November 30, 2018
Mortgage rates surged lower this week as markets reacted to a speech by Federal Reserve Chair Jerome Powell, who said rates were now just below neutral. That’s a fancy way of saying that the Fed is getting close to being done with the current cycle of interest rate hikes. While those hikes don’t affect mortgage rates directly, an ongoing cycle of Fed rate hikes tends to coincide with rising mortgage rates.
After the speech, bonds improved at their quickest pace in more than 2 weeks. Bond market improvement translates to lower rates. Combined with the strong week earlier in the month, it was enough to make November the best month of 2018 for rates.
Next week brings important economic data that could either accelerate or reverse the positive momentum.
-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, November 23, 2018 : 4.94% (+0.00%)
Mortgage rates were every bit as flat as expected today. That’s a good thing at the moment, considering we’re holding in line with the lowest levels in more than a month. For the average borrower, that’s roughly an eighth of a percentage point lower than 2 weeks ago, when rates were near 8-year highs.
More detail: “Expect More Mortgage Rate Volatility in Coming Weeks”
Monday, November 26, 2018 : 4.94% (+0.00%)
Mortgage rates began the post-holiday week by holding the same sideways posture seen last week during the slow market days surrounding Thanksgiving. Generally speaking, slow market days make for limited mortgage rate movement. The Monday following Thanksgiving is often something less than a full-fledged trading day for the investors that ultimately dictate interest rate momentum. In other words, today’s absence of change isn’t abnormal. There’s a greater chance that we see some more movement in the coming days.
More detail: “Mortgage Rates Still On Vacation”
Tuesday, November 27, 2018 : 4.94% (+0.00%)
Mortgage rates avoided returning to reality yet again today. In other words, rates were almost perfectly unchanged for the 4th straight business day. These patterns (or lack thereof) are fairly typical of the thanksgiving time frame, but the return of volatility is a bit of a moving target after that. Clearly, we’re not there yet.
More detail: “Mortgage Rates Hold Recent Lows “
Wednesday, November 28, 2018 : 4.93% (-0.01%)
Mortgage rates began the day just like they’ve begun each of the past 5 business days: perfectly unchanged! As we discussed yesterday, the recent absence of movement is a good thing in the short term as rates are holding near their lowest levels in more than a month. And it’s a bad thing in the bigger picture considering current levels are still very close to the highest rates in more than 7 years.
More detail: “First Noticeable Move in Mortgage Rates in More Than a Week”
Thursday, November 29, 2018 : 4.84% (-0.09%)
Mortgage rates surged lower today, falling at the fastest single-day pace in more than a year. In order to see the average lender offer lower rates, you’d need to go back to October 2nd at least. For many lenders, it would be a few weeks before that. Granted, this merely restores rates to what had been 7-year highs at the time, but you know what they say about journeys of 1000 steps and what not…
More detail: “Mortgage Rates Surge Lower”
Friday, November 30, 2018 : 4.86% (+0.02%)
Mortgage rates may have ebbed slightly higher today, but that only erased a fraction of the improvement seen over the past 2 days. Combined with the even stronger showing 2 weeks ago, this makes November the best month of 2018 in terms of mortgage rate improvement.
More detail: “November Was a Great Month For Mortgage Rates”