It’s a Bunch of Ups and Downs
For the second week in a row, mortgage markets started the week strong and then ended with a fizzle. The good news is, In the holiday-shortened week, rates were exactly flat overall.
With such a short news week, there wasn’t much economic data to move rates last week. The market’s up-and-down action was largely based on two events:
- A reputable analyst said banking-sector optimism may be premature
- Wells Fargo reported a record $3 billion in first quarter earnings
It was the first item that dropped rates Monday and Tuesday; the second item, in part, that pushed them back up.
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!
