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Mortgage Rates Unchanged at Multi-Year Highs

Mortgage rates stayed steady today, on average, though any given lender could be slightly better or worse compared to yesterday.  Bond markets (which underlie rate movement) are beginning the process of winding down for the holiday season.  That doesn't mean that rates won't move for the rest of the year--simply that the intraday rate movement will be more random.  This can be frustrating in the coming weeks because it can result in big changes without any warning based on the slate of events on the calendar (typically, we know which events run the risk of causing big moves ahead of time).

That's just as well considering the prevailing strategy for more than a month has been to expect higher rates until we see a meaningful move back toward lower rates.  In this context, the minimum requirement to achieve "meaningful" status would be three consecutive days of improvements with the third day bringing rates to 2-week lows or better.  Granted, with each new step toward higher rates, additional weakness becomes less and less likely, but attempts to catch this falling knife (i.e. trying to predict when rising rates will take a break) have been ill-advised so far.  

Conventional 30yr fixed quotes are running between 4.375% and 4.5% on top tier scenarios for most lenders.  A few are higher (4.625%) and lower (4.25%).  On average, today's rates are the highest since April 2014.

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