Mortgage Rates have calmed down after some unfortunate and unexpected volatility at the beginning of the week. The average lender is offering just slightly higher rates than they were yesterday morning. Other lenders raised rates yesterday and were fairly close to ‘unchanged’ today.
Reminder: Mortgage Rates are driven by the buying and selling of mortgage backed securities (MBS). When investors bid up the price of the bond, rates fall. Conversely, when bond prices fall, rates rise. The chart below shows the past five trading days/trend bond prices heading lower.
The capital markets will CLOSE today at 11am and reopen Tuesday 12-27-2022. Combine that with the fact that bond trading has shifted into “holiday mode” and we’re basically waiting until the 2nd week of January before we get a clearer sense of the next leg of rate momentum. Between now and then, random volatility inside a reasonably narrow range is the name of the game.
Bottom Line: we are floating new escrows into next week.
SOURCE & AUTHOR |
Keith Murphy Branch Manager – Essex Mortgage NMLS #330827