Mortgage Rates Still Working on That Ceiling

Mortgage rates didn't move much today.  Most lenders were just slightly lower/better this morning, but mid-day market weakness prompted several of them to reissue higher rates.  In the bigger picture, however, the past several days represent a welcome stint of relative calm.  The general trend had been toward higher rates beginning in mid-December.

Granted, that general trend could continue and the past few business days could merely be a pause.  But the point is, whether it's a pause or the beginning of a reversal, either would begin the same way.  The important development in underlying bond markets has been resilience at the weaker (read: higher rate) levels.  Using 10yr Treasury yields as a benchmark for rate in general, we'd want 2.60% to continue to act as a ceiling.

The ingredient we're still missing is the move below an important floor.  In the current case, 2.52% would be a good first step.  A move to 2.42% would likely correspond with top tier 30yr fixed mortgage rates returning to 4.0% on average.

This Daily Mortgage Rate Update is provided in partnership with Mortgage News Daily.