Thursday, September 07, 2017

Mortgage Rates at 2017 Lows

by Bill McBride on 9/07/2017 07:06:00 PM

From Matthew Graham at Mortgage News Daily: Mortgage Rates Little-Changed at 2017 Lows

Mortgage rates didn't move much today, despite plenty of strength in underlying bond markets.  This would normally coincide with lower rates, so what's the deal?

The main issue is timing.  Bond markets weakened yesterday afternoon.  This would imply higher rates, but most lenders never went to the trouble of adjusting rate sheets intraday.  As I said yesterday, those lenders would begin today at a disadvantage.  Indeed they did, and that disadvantage was generally erased by the improvement in bond markets.  Thus, lenders who didn't move rates higher yesterday were able to keep today's rates relatively unchanged, thanks to bond market gains.  Lenders who DID raise rates yesterday were able to offer slightly lower rates today.

All in all, the average lender is quoting the lowest rates of 2017, with more than a few lenders at 3.75% on a top tier conventional 30yr fixed scenario.  Most lenders are able to quote 3.875% now, though a few remain at 4.0%.
emphasis added