October 20, 2021

MP Now News

Mortgage News

Highest Rates in a Week After Surprisingly Strong Economic Reports

Mortgage rates pulled higher again today, bringing the average lender to their worst levels since last Thursday. Due to the recent regulatory changes, there are some exceptions to this. In particular, many lenders have improved second home and investment property loans. This is the short version. If you need background information, here is the long version.

The average credit scenario was unaffected by the regulatory changes, allowing it to respond to the weakness of the bond market of the day. Bonds reacted immediately to two economic reports that came in much stronger than expected this morning. In general, stronger data pushes bond prices down and yields (also known as “rates”) higher. the culprit in this case, it was August retail sales and the Philadelphia Fed’s Manufacturing Outlook Survey in early September. Both came out at 8:30 a.m. ET, and by 8:35 a.m. the damage was done.

By doing larger picture, Today’s drama is a drop in the ocean. Interest rates have remained broadly sideways since July, with most traders expecting more volatility next week following the Fed’s announcement on Wednesday afternoon.