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Mortgage Rates Holding at Highs, Anxious About Days Ahead

Mortgage rates held fairly steady this morning, keeping them in line with the highest levels since early August.  As the day progressed, underlying bond markets weakened.  This implies higher rates tomorrow or, for some lenders, a late day change to today's rate sheet offerings.  The changes aren't severe, but at recent highs, every little bit hurts.  If the next 5 days are anything like the past 5 days, we'd be looking at the highest rates since 2011!  In other words, we may not be moving too much, but the outright levels continue to be unpleasant.

There were no specific motivations in financial markets to account for today's bond market weakness.  That said, there is anxiety about events coming up in the rest of the week.  These include economic reports (like the inflation data tomorrow and Thursday), bond auctions (supply = lower bond prices = higher rates), and a policy announcement from the European Central Bank.  If all of the events were to go against us, rates could easily move to new long-term highs.  If they don't, there's a chance we'll catch a break by Friday. 

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