Mortgage Rates Slightly Higher To Start The Week. More Volatility Ahead

Mortgage rates are fresh off their best week since at least July and their best winning streak (in terms of consecutive days moving lower) in well over a year. The price of admission happened to be the highest rates in more than 20 years, so the recent improvements were really nothing more than a balancing act. The past 2 trading days (Friday and today) have helped reinforce that message. In other words the underlying bond market (which dictates mortgage rates) was simply de-escalating from a more panicked state as opposed to embarking on a new trend toward lower rates. Any new trend toward lower rates will depend upon inflation and economic data. To a lesser extent, Fed policy changes can shape trends, but ultimately, if Fed policy is well understood to be a function of inflation and the economy, then we're right back to watching the data. The only time the Fed shapes trends in a more noticeable way is when their policy outlook is evolving or changing. Some market participants think the Fed is close to making a slight course correction that acknowledges economic headwinds. If this turns out to be the case, we could get some indication of that on Wednesday when the Fed releases the latest policy announcement. To be sure, the Fed will still be hiking its policy rate by 0.75%. Markets know this and rates have already taken their lumps accordingly. What markets don't know is whether Fed Chair Powell is ready to discuss the potential changes in the rate hike trajectory in the next 2 meetings or even give any indication that the Fed feels like it's getting close to the ceiling for rates. If we know Powell, he'll be sure to say "it depends on the data."

October 31, 2022 Download our Mobile App: Download our Mobile App: Mortgage Rate Watch Mortgage Rates Slightly Higher To Start The Week. More Volatility Ahead Mortgage rates are fresh off their best week since at least July and their best winning streak (in terms of consecutive days moving lower) in well over a year. The price of admission happened to be the highest rates in more than 20 years, so th... (read more) MBS Commentary Late Day Volatility Surrounding Month-End and Corporate Issuance Late Day Volatility Surrounding Month-End and Corporate Issuance The day got off to a slow start with bonds trading almost perfectly flat after losing ground modestly in the overnight hours. Higher infl... (read more) Rob Chrisman DPA, Broker, HELOC, Business Review Products; Webinars; M&A Environment For me, the next ten days includes time in Chicago, the Wisconsin Dells, and Atlanta. It isn’t a scary agenda. At the ready for tonight’s Halloween fun? Polls seem to indicate that the most popular treat is Reese’s Peanut Butter Cups, followed by Ree... (read more) Mortgage Rates 30 Yr. Fixed Rate 7.13% +0.05% Rate Change Points Mortgage News Daily 30 Yr. Fixed 7.13% +0.05 0.00 15 Yr. Fixed 6.62% +0.12 0.00 30 Yr. FHA 6.70% +0.08 0.00 30 Yr. Jumbo 6.17% +0.08 0.00 5/1 ARM 6.82% +0.07 0.00 30 Yr. VA 6.75% +0.09 0.00 Updates Daily - Last Update: 10/31 15 Yr. Fixed Rate 6.62% +0.12% Rate Change Points Freddie Mac 30 Yr. Fixed 7.08% +0.14 0.80 15 Yr. Fixed 6.36% +0.13 1.40 5/1 Yr. ARM 5.96% +0.25 0.30 Updates Weekly - Last Update: 10/27 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 7.16% +0.22 0.88 15 Yr. Fixed 6.39% +0.30 1.52 30 Yr. Jumbo 6.53% +0.22 0.68 Updates Weekly - Last Update: 10/26 MBS / Treasuries UMBS 30YR 5.0 96.55 -0.36 Price / Yield Change MBS UMBS 5.0 96.55 -0.36 UMBS 5.5 98.75 -0.34 GNMA 5.0 97.30 -0.36 GNMA 5.5 99.53 -0.30 Pricing as of: 10/31 5:41PM EST 10 Year US Treasury 4.0499 +0.0397 Price / Yield Change US Treasury 2 YR Treasury 4.487 +0.072 5 YR Treasury 4.230 +0.049 7 YR Treasury 4.145 +0.044 10 YR Treasury 4.050 +0.040 30 YR Treasury 4.163 +0.028 Pricing as of: 10/31 5:41PM EST Latest Video There's a tremendous housing shortage across the country, says ConnectOne B... We're preparing for home prices to fall, says Raymond James' Buck Horne Expect a 75 bps hike this week, then 50 in December, says fmr. PIMCO chief ... The Fed is going to continue to be data dependent, says NBER Chair John Lip... Around the Web Calculated Risk Blog Housing October 31st Weekly Update: Inventory Increased, New High for 2022 CNBC Homebuilders say they're on the edge of a steeper downturn as buyers pull back CNBC U.S. Treasury yields climb as investors look toward November Fed meeting Wall Street Journal Eurozone Inflation Rate Rises to 10.7% as Recession Looms Calculated Risk Blog Q3 2022 GDP Details on Residential and Commercial Real Estate Eye on Housing All-Cash New Home Sales Outnumber FHA-Backed for the First Time Since 2007 Calculated Risk Blog Lawler: Selected Operating Results, Large Home Builders; Cancellation Rates Increasing Sharply CNBC Demand for Series I bonds crashes TreasuryDirect site ahead of key deadline as investors try to secure 9.62% rate CNBC Pending home sales fell 10% in September, much worse than expected Eye on Housing Buyers Expectations of Housing Availability Continue to Improve Eye on Housing Inflation Brings Savings Rate Down In September Calculated Risk Blog NMHC: Survey shows "Apartment Market Softens" in October CNBC U.S. consumer spending seeing a 'mitigation' in growth not a slowdown, says Bank of America CEO

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