Rates Stay Low; Bigger Risks/Rewards Next Week

Mortgage rates remained at recent lows today, as underlying bond markets strengthened.  For US Treasuries, this brought rates to new multi-month lows.  Mortgage-backed bonds, on the other hand, simply returned in line with the best levels of the week.  That allowed mortgage lenders to continue offering the best rates of the week (also the best rates in more than year!).

For most of 2019, rates have remained locked in a narrow range.  The past few days have done more than any others to challenge that range, but it will likely take friendly words from the Fed next Wednesday to fuel any further improvement. 

With that in mind, I'd say that much of the recent strength in rates is based on hopes for friendly central bank policies.  There's always a risk that the Fed isn't quite ready to say what markets are hoping they'll say.  If that's the case, we could see rates retreat back into the previous range.  Either way, next week presents a bigger risk/reward scenario in terms of how far rates could move.

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