There are two big news for Mortgage rates in the last working days. The first came last week in the form of the abolition of the unfavorable market fee that artificially raised interest rates on refinancing transactions since late summer last year. The second came in the form of an impressive improvement in the bond market yesterday (bonds are the main motivator for mortgage rates). This friendly double hit pushed the average lender slightly into the lowest interest rate range since early February, with conventional refinancing quotes back below 3.0% at best.
It remains to be seen how long we can enjoy these tariffs. Volatility in today’s bond markets offered a warning. The first few hours of trading were indeed excellent, with bonds improving to significantly better levels than yesterday. This was actually partly responsible for the fact that the prices were even lower this morning than yesterday. Then, in less than 2 hours, all of those profits were gone and the mortgage lenders issued negative new prices in the early afternoon. Granted, prices are still great after these midday price changes, but the intraday volatility is a reminder that prices can move in two directions.