Mortgage rates were slightly lower today despite some volatility in the underlying bond market. Rates have generally been moving lower recently, but the trend of improvement looked like it might have been running into some resistance yesterday. While today's drop isn't big enough to suggest complacency, it does make a case for slightly less defensiveness in the short term.
In the bigger picture, however, it's good to keep in mind that rates are the lowest they've been in almost a month. Early September was still a bit better, but those were the lowest rates in more than 3 years.
Volatility remains a risk as every update regarding a potential trade deal seems to have an easy time pushing the bond market around. When bonds improve or deteriorate enough during any given day, lenders can issue mid-day changes to mortgage rate quotes. It's a good idea for consumers to have a gameplan about locking vs floating with their mortgage professional of choice.
Loan Originator Perspective
Bonds limped through the day near unchanged, amid Fed rhetoric and below forecast Producer Price Index data. US/China tariff talks later this week have the potential to hurt rates. I'm locking applications closing within 45 days, with pricing near the best levels in a month. -Ted Rood, Senior Originator
Published on Mortgage News Daily
By: Matthew Graham
October 8, 2019
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