Up and Down Day with Mortgage Rates

It was a roller coaster day yesterday for mortgage rates. The day began with much better than expected economic data which pressured rates higher in the morning. At 1pm, the Department of Treasury announced the results of the 30 year bond auction which wasn’t received well by market participants. The weak demand for our nation’s debt pressured rates even more forcing lenders to reprice for the worse. Then came the Fed announcement at 2pm regarding their treasury buying schedule.

As I stated in yesterday’s blog, I expect to see some kind of relief rally following this announcement, and that is what we got. After the 2pm announcement, mortgage backed securities rallied which allowed lenders to reprice for the better bringing consumer borrowing costs back to even on the day. A couple lenders even repriced better twice netting an improvement on the day.

In observance of Veteran’s Day, the bond market is closed. The few lenders that will issue rate sheets this morning will use the ones from late yesterday, but most lenders are closed and won’t accept locks.

I do expect to see continued gains in the days ahead in the rates markets; thus I favor floating all loans today.

I would like to thank all Veteran’s for your service and sacrifice. Without you, I would not be able to enjoy the freedoms I have today.