Mortgage Rates Little Changed After Yesterday’s Big Drop
Mortgage rates were mixed today, depending on the lender. Some rate sheets were slightly better or worse than yesterday’s latest, but the broader average was unchanged. This happened in spite of weakness in bond markets. This includes mortgage-backed-securities (MBS), the bonds that most directly affect mortgage rates.
Losses in MBS almost always correspond with rates moving higher, but in yesterday’s case, the gains were so precipitous that the benefits hadn’t fully translated to rate sheets by the end of the day. That left lenders some wiggle room this morning.
The most prevalently quoted conforming 30yr fixed rate for top tier borrowers remains 4.125% for a second day. Until yesterday, September’s weakness had kept that rate at 4.25% for several weeks. Differences from yesterday would be seen in the form of closing costs.
Tomorrow brings the most important piece of economic data of any given month. The Employment Situation Report, which includes ‘nonfarm payrolls’ and the unemployment rate will start the day off at 8:30am–well before lenders’ generate the first rate sheets of the day. Even though financial markets have shown some disregard for economic data in general, this report is still likely to generate an initial response. If the previous month’s somewhat weaker numbers are revised higher in addition to stronger numbers in this month’s headline, rates would likely be higher right out of the gate.