It Only Took One Day to Reverse Positive Gains Last Week

World Events Can/Do Move Rates

In a holiday-shortened week on Wall Street, mortgage markets improved on 3 of 4 days, but still posted its fourth losing week in a row.

Unfortunately for home buyers and rate shoppers in Iowa , last week’s 3 days of gains were mild improvements; the one day of deterioration was among the Top 10 worst days for mortgage bonds this year. Fantastic, right? (Heavy sarcasm intended!)

Mortgage rates in Ankeny are at their highest levels since mid-July. The Refi Boom is unwinding pretty quickly.

Last week reinforces the importance of the global community to the future of the U.S. mortgage market. Two of the main reasons why mortgage rates increased were not domestic (just like the beer you drink while on the beach in Mexico).

Concerns for a full-blown North Korea/South Korea conflict lessened quickly
The likelihood of a speedy, $85 billion bailout Ireland increased

The two events stemmed the typical safe-haven buying patterns that accompany political and economic uncertainty, and drive down mortgage rates.

Specifically, What Did Those Reports Say?

Each week, I put up an economic calendar of news coming out that following week. Here’s the what actually happened with those reports last week:

What Impacts Mortgage Rates?

If you’re looking to purchase or refinance a home, it’s important to know what moves mortgage rates. There are normally two major things that impact the direction:

Economic News. (Like the calendar above).
International News. (major events, pending legislation, war related news, etc).
Stock Market. (Money flows from equities (stocks) to bonds when it seeks shelter).

What Are Rates Based On?

It’s been mentioned before, but as a common reminder – mortgage rates are only based on one thing, Mortgage Backed Securities (MBS). The only way you have access to these is through live bond quotes.

Looking For Mortgage Rates?

If you’re looking for specifically what mortgage rates are doing, I’d be happy to help with a custom rate quote. Each scenario is different (there are 27 different factors a mortgage rate is determined by). If you or someone you currently know are looking for a mortgage, I’m here to help!

Information without obligation. That’s my policy. If you like what you hear, my team and I would love to help you out with your mortgage! Our contact information is on the top right hand side of this page!