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Mortgage Rates Hold Ground After Tax Plan Release

Mortgage rates were relatively unchanged today, but only after averaging the disparate changes from various lenders.  That means some lenders are in much better shape versus yesterday while others are noticeably worse.  

This sort of disparate movement isn't typical of mortgage rates across lenders, but it can happen when underlying bond markets experience volatility on back-to-back afternoons.  That was indeed the case over the past 48 hours.  Bond markets weakened (which pushes rates higher) yesterday afternoon, but only a handful of lenders issued reprices (new, higher rates, in response to intraday market movement).  Today's volatility was in our favor resulting in several lenders issuing POSITIVE reprices.

Bonds made gains into the afternoon after Trump's tax plan was released.  Stock markets were more optimistic about the potential details and bonds were more cautious.  Both judged that they'd overshot the mark a bit, given the actual details of the announcement.  In other words, stock prices and bond yields (which correspond to mortgage rates) rose more than they otherwise would have and thus had a quick correction back in the other direction.  

Depending on the lender and the time of day you check in, today's rates might not have caught up to the underlying market movement yet.  In those cases, you'd likely see improvements tomorrow, BUT only if bond markets don't move between now and then.

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