Mortgage Rates Trying To Stay At Recent Lows



Mortgage loan rates There was a spike in volatility last week as a larger dose of new supply came to the broader bond market. In other words, between the set of planned treasury auctions and the sharp increase in corporate bond issuance, there are many new bonds looking for buyers. More supply means bonds should offer higher yields (also known as “rates”) to attract buyers. As a result, mortgage rates increased, but only in the first half of the week.

Once the market had run out of supply, new Covid concerns and geopolitical risks together tipped the balance in favor of bond buyers (investors often seek refuge in bonds amid uncertainty and / or economic weakness). More buyers means lower rates, all other things being equal. The good times continued until Monday morning. Since then, the bond market has leveled off, but is doing pretty well. holding in this lower range.

How does this affect mortgage rates? The average lender is currently only marginally valued. better what they were last Monday morning. Typical top-tier 30-year fixed rates can still dip below the 3% mark, depending on the scenario, but this is a much bigger challenge than it was 2 weeks ago. Rates still vary significantly between lenders.


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