July 31, 2021

MP Now News

Mortgage News

Mortgage Rates End High After Starting Day Higher

Mortgage rates started the day in bad shape after significant weakness in the bond market overnight. Government bond yields rose about 0.05%, and this type of move typically coincides with an almost equally sharp rise in mortgage rates. Today wasn’t a big exception. The average lender started out with 30-year effective fixed rates that were roughly 0.03-0.04% higher than yesterday, meaning they were the highest in a year!

Note: if we refer higher “effective prices” This usually means that the costs associated with yesterday’s tariffs have shifted from the actual tariff. These upfront costs are more of a fine-tuning option.

Today’s big task was politicians’ announcement of the Fed – not so much because of expected policy changes, but rather because of the possible extension of a temporary rule that made it possible for large banks buy more bonds. Generally speaking, buying more bonds means lower interest rates, all other things are the same.

Fed Chairman Powell was asked about this extension at the news conference after the announcement but declined to comment, saying instead that information would be made public in the coming days. That was good enough for the bond market to reclaim some of the ground lost today, and for several mortgage lenders to offer late-day price enhancements – albeit small ones.