Mortgage rates moved modestly lower by the end of the day, but didnt break any new ground on the week. The afternoon brought the weeks main event in the form of the Feds policy announcement. It lived up to its potential as a major market mover, but much of that movement came in the form of short-term volatility. This ultimately left rates within the recent range that has characterized most of the month of June. If we go one step further and consider that yesterdays somewhat abrupt move higher in rate was due to markets quickly adjusting expectations for todays Fed Announcement based on yesterdays CPI, things get even more underwhelming. Reason being: rates rose yesterday as markets braced for tougher talk from the Fed regarding inflation, but regained most of that lost territory today. The net effect for the mortgage market is that we have rate sheets that are just slightly better than yesterdays and not quite back to Mondays. The most prevalently quoted conforming 30yr fixed rate for best-case scenarios (best-execution) remains 4.25%. Many borrowers will see todays drop only in the form of lower closing costs (equivalent to 0.03% in terms of rate). That said, with some of the improvement in markets coming as late in the day as it has, lenders likely have a bit more to go before rate sheets match market conditions. Well only see that extra improvement if trading levels are in similar territory tomorrow morning (because its too late in the day for many lenders to reissue rate sheets). The Mortgage News Daily
Posted on: Wed, 18 Jun 2014 21:30:51 +0000
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