Mortgage Rates Sideways Despite Stronger Market Conditions
Mortgage rates were sideways for the most part today, keeping the most prevalently quoted conforming 30yr fixed rates between 4.0 and 4.125%. After bond markets made it through this week’s Treasury auction process (which happens every other week, in general, and can restrain positivity to a small extent), trading levels improved and several lenders have released positive rate sheet revisions. But even then, the improvement seen on rate sheets didn’t measure up to the improvement in the mortgage-backed-securities (MBS) that most directly affect lenders’ rate sheets.
This isn’t altogether uncommon, especially when MBS improve late in the day as was the case today. The tacit implication is that rates can improve even if markets merely hold steady tomorrow. That’s a fairly big “if” considering the week’s most important economic data comes out in the morning, but all things being equal, markets have shown that they’re at least receptive to the idea of reversing recent trends.