Mortgage Rates Sharply Lower

The average mortgage lender is quoting a top tier 30yr fixed mortgage rate that is nearly a quarter of a percent lower than the same scenario last Friday. Granted, big moves like this are more common after hitting multi-decade highs, bit today's example has other motivations. Specifically, the outbreak of the Israel-Gaza conflict prompted some excess demand for safer haven assets like US Treasuries and mortgage-backed securities. Perhaps more importantly the conflict creates geopolitical uncertainty that is seen as one more reason for the Fed to "wait and see" when it comes time to decide whether to hike rates one more time in 2023 or not. Last but not least, today's rate movement was bigger than it otherwise might have been due to the bond market holiday. Most mortgage lenders did not update their rate offerings yesterday, thus facing the need to account for an additional day of global events. Frequently, this wouldn't matter, but things are different when global events are having a big impact. Regardless of the new motivations behind today's rate rally, old motivations are still important. Specifically, if economic data falls far from expectations in the coming days, rates would likely react--especially for Thursday's Consumer Price Index (CPI).

October 10, 2023 Download our Mobile App: Download our Mobile App: Mortgage Rate Watch Mortgage Rates Sharply Lower The average mortgage lender is quoting a top tier 30yr fixed mortgage rate that is nearly a quarter of a percent lower than the same scenario last Friday. Granted, big moves like this are more common after hitting multi-decade highs, bit today'... (read more) MBS Commentary Bonds Reacting to Israel-Gaza Conflict News of the Hamas bombing of Israel dominated headlines after markets closed last week. As the situation escalated over the weekend, financial market had motivation for volatility as the new week began. Bond market gains were relegated to... (read more) Rob Chrisman Scalability, Insurance, Digital, Servicing, DPA Products; Events, Training, and Webinars “I dance like people wish they weren't watching.” Someone sure is watching, and counting, empty houses. Lack of available housing inventory has helped keep housing costs high throughout many of the nation’s big cities, but nearly 5.5 million homes si... (read more) Mortgage Rates 30 Yr. Fixed Rate 7.62% -0.19% Rate Change Points Mortgage News Daily 30 Yr. Fixed 7.62% -0.19 0.00 15 Yr. Fixed 7.00% -0.12 0.00 30 Yr. FHA 7.10% -0.12 0.00 30 Yr. Jumbo 7.85% -0.05 0.00 5/1 ARM 7.07% -0.05 0.00 30 Yr. VA 7.12% -0.12 0.00 Updates Daily - Last Update: 10/10 15 Yr. Fixed Rate 7.00% -0.12% Rate Change Points Freddie Mac 30 Yr. Fixed 7.49% +0.18 0.00 15 Yr. Fixed 6.78% +0.06 0.00 Updates Weekly - Last Update: 10/5 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 7.41% +0.10 0.71 15 Yr. Fixed 6.73% +0.11 1.17 30 Yr. Jumbo 7.34% +0.02 0.78 Updates Weekly - Last Update: 9/27 MBS / Treasuries UMBS 30YR 6.0 98.28 +0.61 Price / Yield Change MBS UMBS 6.0 98.28 +0.61 GNMA 6.0 98.77 +0.63 Pricing as of: 10/10 5:31PM EST 10 Year US Treasury 4.6530 -0.1520 Price / Yield Change US Treasury 2 YR Treasury 4.959 -0.126 5 YR Treasury 4.605 -0.161 7 YR Treasury 4.653 -0.158 10 YR Treasury 4.653 -0.152 30 YR Treasury 4.831 -0.143 Pricing as of: 10/10 5:31PM EST Latest Video Fed will start to pivot on rates in the second or third quarter of '24, say... Komal Sri-Kumar: Don't see too much of a yield rise ahead Kleintop: The future of rates seems to matter more to markets than geopolit... Minneapolis Fed President Neel Kashkari: Inflation is headed down Around the Web Marketwatch 2-Treasury yield ends at lowest level in over a month on prospect of no more Fed rate hikes CNBC Housing industry urges Powell and the Fed to stop raising interest rates Reuters Top Fed officials nod to higher bond yields as cause for caution on rates Reuters Fed's Kashkari: Soft-landing in view, but risks remain CNBC The 11 major U.S. cities where home prices have risen the mostNo. 1 isn't New York or San Francisco Calculated Risk Blog Part 2: Current State of the Housing Market; Overview for mid-October Eye on Housing Residential Building Wage Growth Slowing Calculated Risk Blog More Employment Graphs: Duration of Unemployment, Unemployment by Education, Diffusion Indexes Calculated Risk Blog 1st Look at Local Housing Markets in September; Early Reporting Markets suggest Sales at New Cycle Low in September CNBC Treasury yields tumble as investors consider impact of Israel-Hamas conflict Eye on Housing Total Credit Outstanding Declines as Interest Rates Climb Fannie Mae Elevated Mortgage Rates Push Housing Sentiment Even Lower CNBC European Central Bank member says more rate hikes still possible if new shocks emerge

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