Mortgage Rates Start Higher, End Flat
Mortgage rates began the day moderately higher, but as market conditions improved most lenders released improved rate sheets bringing offerings more in line (or slightly better than) yesterday’s. This keeps the 30yr fixed best-execution rate at 4.5%, though buying down to lower rates can make sense in some cases. For the first this week, lender pricing strategies are highly stratified. This simply means that some are in noticeably better territory, some are almost imperceptibly stronger, and a few others either have yet to reprice or haven’t quite caught up with the rest of the pack yet.
Today’s economic data was not a significant motivation for interest rates though the completion of the week’s Treasury auctions helps take some supply pressure off bond markets. Treasury supply is just like anything else in terms of “supply and demand.” As it increases, prices fall, and falling prices in bond markets mean higher rates. MBS (the “mortgage-backed-securities” that most directly influence mortgage rates) tend to move in the same direction as Treasuries (just like stocks in the same sector tend to move in the same direction unless there’s company-specific news that affects one over the other).
It’s not as if markets aren’t planning on this new supply coming to market, but there’s always some amount of variability as to how other auction participants will bid. In general, markets are slightly less aggressive in buying Treasuries until auctions are complete, allowing for some of that demand to come back into view. This doesn’t mean nearly as much as it sounds like it might, but is just another small piece of today’s ability to hold its ground against the past two days of weakness. In general, we continue to be in a wide, sideways range ahead of next week’s more important events, with possibilities that rates can move in either direction in the meantime.
For more information visit http://www.mortgagessiny.com
Posted on July 25, 2013, in Uncategorized and tagged Low Rates, Mortgage, mortgage expert, Mortgage Rates, mortgage rates on staten Island, Mortgages, my rate, Staten Island. Bookmark the permalink. Leave a comment.