Mortgage Rates Catch a Break After Last Week's Rout

Posted To: Mortgage Rate Watch

Mortgage rates had a bad week last week, quickly rising to the highest levels in months. To make matters more frustrating, there weren't any clearly-delineated reasons for the rate spike. Making sense of the movement required a dive into the esoteric conversation about the year-end bond trading environment. That esoteric conversation is still the only way to make sense of today's movement, but this time around, the move is in our favor. What had been an abrupt, inexplicable spike higher last week has now been largely undone by an abrupt, inexplicable move lower today. Rates were only modestly lower this morning, but as underlying bond markets rallied more aggressively, most lenders issued updated rate sheets this afternoon. Borrowers who had seen top tier rates move up an eighth of a percentage...(read more)

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