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Data Comes In Under Expectations

All last week, mortgage markets reacted poorly to housing data and employment data that came in lower than expected.  Overall, rates moved higher through the week.

It was the third time in 4 weeks that mortgage rates were up as a general weekly move.

Volatility at the End of the Week

Unfortunately for rate shoppers, mortgage rates were especially volatile both Thursday and Friday.

As an increasing number of traders checked out of work early ahead of the 3-day weekend, the mortgage pricing swings grew wider and wider as fewer traders could spread the movement.  Rates were at their lowest last week on Wednesday morning.  By Friday, some mortgage rates were higher by as much as 3/8 percent.  Timing is everything!

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:

1. Economic News.  (Like the calendar above).
2. International News. (major events, pending legislation, war related news, etc).
3. 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!