Mortgage Rates saw a sharp decline since October 25th. Rates started rising again on Wednesday 11-8-23
Why? There are not enough buyers to support the issuance of debt. Case in point, the bond markets (treasury and mortgage) took a gut-punch yesterday with the dismal 30yr TSY auction. The treasury auctions debt to pay for spending (and raises taxes, but that is a topic for another post). Thursday’s auction of $24 billion in 30-year bonds Thursday afternoon went poorly, undermining investors’ hopes that demand would hold up for government debt. The weaker-than-expected sale triggered an aggressive selloff in the long-dated bond and sent U.S. stocks to New York session lows.
Bottom Line: Anything can happen on any given day, but the “next move” stands the best chance of getting some guidance after next week’s Consumer Price Index (CPI) on Tuesday morning. This is a key inflation report that has been responsible for some of the biggest moves we’ve seen in rates in the past 2years.
SOURCE & AUTHOR |
Keith Murphy Branch Manager – Essex Mortgage NMLS #330827