Mortgage Rates Deeper into 2 Month Lows as Stocks Swoon
We always love when great information lands in our inbox, that we can in turn share with our community here on the blog. Thank you so much to Patrick Steele, one of our trusted "mortgage dudes" for sending this one our way! :)
Mortgage rates technically hit their lowest levels in exactly 2 months yesterday. Today merely takes them deeper into that territory. The size of the improvement is less impressive and less meaningful compared to that "lowest in more than 2 months" talking point. That said, taken in conjunction with the last 4 business days, the average lender is roughly an eighth of a percentage point lower. That comes out to $7/mo for every $100k financed (or $21/mo on a $300k loan).
On a somewhat frustrating note, mortgage rates didn't experience nearly as big of a move as the broader bond market. For instance, 10yr Treasuries--the most widely-used benchmark for longer-term interest rates) dropped 0.05% today. Mortgages only managed to drop by 0.02% in terms of effective rates.
The bigger improvement in Treasuries is a multifaceted issue, but was due in large part to big losses in stocks. Both sides of the market are closed tomorrow for a day of mourning in honor of the late George H.W. Bush. This results in a concentrated dose of economic data on Thursday and Friday. If it's weaker than expected, rates could easily continue lower, but if it surprises to the upside, the bounce back in rates could be somewhat abrupt.
Thanks again to Patrick for sending this to us, and a huge shout out to www.mortgagenewsdaily.com for putting this together!