Mortgage Rates Relatively Flat Today, But Tomorrow Brings Challenges

Mortgage rates were flat-to-slightly-higher today, depending on the lender and the time of day.  Why would the time of day matter?  Mortgage rates are based on prices and yields in the bond market.  Bonds move throughout the day, but mortgage lenders only change their rates if bonds move by a certain amount.  By the end of the day, bonds had moved just enough for a few lenders to increase rates, even if only by a modest amount.

When this happens, it can often present an opportunity for those faced with a short-term decision on locking their rate because lenders who held rates steady today will likely have to account for the bond market weakness with tomorrow morning's mortgage rate offerings.  This, of course, assumes that the bond market doesn't turn right back around in the overnight and early morning trading hours (which occur before lenders release their first rate sheet of the day).

In the bigger picture, rates are on the edge of the lower range seen in recent weeks and the higher range that dominated most of 2019.  We were hoping/expecting to see a more definitive reaction to last Friday's jobs report, but it looks like we'll have to wait a bit longer for the market to make a choice between the higher and lower ranges.

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