Mortgage Rates have fallen “quickly” to the lowest levels in weeks!  If you are reading this email each week, then it’s no secret that mortgage rates have had a rough month in March and a rough year in general. The average lender raised 30yr fixed rates by roughly half a percent in February and March alone.  But April has proven to be an entirely different sort of month so far.  In the past 2 weeks, rates are down nearly a quarter of a point!

Here is a chart of the last 5 days of MBS 30yr Coupon trading (as bond prices rise, yield/rate comes down):

If we take a wider 6 month view, you can see we still have a long uphill battle to get back to rates in the low 2% range:

One of the most interesting things about today’s move was that the bond market improved AFTER a slew of significantly stronger economic data with stocks hitting “all-time highs” on the news .  That’s interesting because the quintessential reaction function in the bond market is exactly the opposite!  In other words, stronger data tends to hurt bonds and push rates higher….but not right now.  Investors are pouring money into the Stock Market & The Bond Market.  This makes no logical sense!  You cannot have a roaring economy and an economic recession at the same time!

So why the divergence?  That’s a hotly debated topic among traders and analysts currently.  One thought is that markets were prepared to see even better data due to stimulus payments showing up in the Retail Sales report.  The other basic consideration (albeit one that is underpinned by complex nuts and bolts) is that bonds have had such a rough go in the past few months that they were due a bit of reprieve in April.  

Whatever the true combination of motivations may be, the results are a welcome reprieve.  The results are also an excellent opportunity that should not be taken for granted if you’re a person who has recently lamented the 2021 rate spike.  There’s really no telling how long these sorts of “welcome reprieves” will last, and it’s still easier to make a case for gradual upward pressure on rates in the bigger picture.

Here are lockable rates as of this AM:


Keith Murphy Branch Manager – Essex Mortgage NMLS #330827

Direct: 714-309-1140


About the Author

Tim Morissette, also known in the community as Mr. Foothill Ranch, offers over 46 years of real estate experience which has given him an established reputation and unmatched market knowledge. He is joined by his wife, Michele and sons Matt and Jeff, as they continue to offer personal service with an emphasis on achieving his clients’ real estate goals.  This unique combination of traits has led to his proven track record of referral and repeat business. This can be witnessed by the trust of homeowners in Foothill Ranch where he has sold twice as many homes and represented three times more buyers than the next-leading real estate agent for the last 26 years.

As residents of Foothill Ranch since 1994, Tim and Michele are actively involved in the community by fundraising for Foothill Ranch Library, Make-a-Wish Foundation, Cancer Society, Homes for Habitat, Relay for Life, South County Outreach, and the local church and schools. Tim enjoys sponsoring community-wide garage sales, paper shredding and e-waste recycling event, an Easter egg hunt, & a Meet Santa Event.

Tim and Michele are dedicated to their family of four sons, daughter-in-laws, and grandchildren. As a family, they enjoy many outdoor activities which include camping, spearfishing, mountain climbing and exploring the miles of hiking and equestrian trails in Foothill Ranch and the Whiting Ranch Wilderness Park. Tim and his sons are also avid snowboarders and enjoy mountain biking and lobster diving. Family is a top priority in the Morissette household. They look forward to helping more families achieve their dreams of homeownership.