-
Mortgage Rates Drop
After a fantastic day on Tuesday and frustrating little bounce after yesterday’s Retail Sales data, mortgage rates have fully recovered back to the recent lows.
Any time rates move enough to merit a discussion, it coincides with a similar move in the broader bond market. Bonds are currently highly susceptible to economic data (as seen on Tue/Wed).
Whereas Wednesday’s data pushed bond yields and interest rates higher, Thursday’s data sang a different tune. weekly Jobless Claims (not to be confused with the big monthly “jobs report” that comes out on the first week of any given month) were higher than expected and several other reports also spoke to a modest uptick in economic headwinds.
The economy may not like headwinds, but what’s bad for the economy is generally good for bonds/rates. Today was no exception. As bonds erased all of yesterday’s losses, interest rates moved back in line with best recent levels. For some lenders, that was Tuesday. For others, it was last Friday.
-
3 Replies
-
Housing Starts for October were reported at a 1.372 Million annual unit pace, which is up 26,000 from last month’s revised report of 1.346 Million, and above estimates of 1.35 Million. Housing Permits, which are a good indicator of future starts, increased to 1.487 Million units. This is up 16,000 from last month’s figure of 1.471 Million.
9:31 AM: Stocks have started the day higher. The Dow is +73.83 at 35,019.30 and the S&P 500 is +4.59 at 4,512.83. Mortgage Bonds are +6bp at 101.25.
-
Seems like there’s light at the end of the tunnel.
-
As of April 2023, after seeing highs reaching over 7 percent in October, the 30-year fixed mortgage rate has come down to 6.88 percent, a huge downturn. Let’s have a look at what recent mortgage rates look like, along with the market:
What Are The Current Mortgage Rates
- 30-Year Fixed: 6.88%
- 15-Year Fixed: 6.09%
- 30-Year Jumbo: 7.05%
- 7/6 SOFR ARM: 6.82%
- 30-Year FHA: 6.22%
- 30-Year VA: 6.24%
Market Overview
Trends: The 30-year fixed rate for conventional loans at the top tier went down to 7.13 percent on November 6 but showed signs of peaking a month back when it hit over 7.00. However, as of these states, rates have shown consistency.
Events lately: Towards the start of October, due to bad economic conditions, many traders withdrew their investments quickly; some were adjusting to the month’s end, which affected the bond market and contributed to the volatility of mortgage rates.
Demand: The possibility of home buyers entering the market is dire, given the current rates and the undersupply of properties available [2].
The overall outlook is that though rates haven’t drastically moved in quite a long time, they still maintain an edge, the amount pointed to over a peak in November. With the new data as it surfaces, the economy will change, and we will have further opportunities in the market space.
Log in to reply.