Mortgage rates moved modestly higher yesterday morning. There was no direct cause for the rise in rates. The previous day stocks systematically rallied following an eight day losing streak. The bond market and consequently mortgage rates opened the day higher yesterday morning. Lenders left rate sheets unchanged on the day. There has been very little volatility in the interest rate market lately. Mortgage rates have only moved a few basis points in either direction. To remind readers, as prices of mortgage-backed securities move higher, lenders are able to offer lower mortgage rates. The only economic data on the discussion block today is the Mortgage Bankers Association’s Weekly Applications Index. The MBA survey covers over 50 percent of all US residential mortgage loan applications…(read more)

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Mortgage rates improved a few basis points yesterday, but only enough to recover loan pricing losses that occurred the previous day. A lack of meaningful economics data combined with a generally slow trading environment have kept mortgage rates in a tight range this week. Although benchmark Treasury yields rallied, mortgages haven't been able to keep pace. To remind readers, as benchmark Treasury yields fall, prices of mortgage-backed securities move higher, which allows lenders to offer lower mortgage rates. MBS prices have moved higher lately, but have not kept up with improvements in the Treasury market, which is why mortgage rates have generally held to a stable range lately. Our lackluster week of economic data came to an end today with several economic releases. First to discuss was…(read more)

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Mortgage rates bounced around a tight range for most of the week. There wasn't much in the way of news to motivate movement in the first three days of the week. Although we did get several key earnings releases, the economics calendar was essential empty and the market's general tone reflected a lack of conviction. Rates were unchanged on Monday, rose modestly on Tuesday then recovered from weakness on Wednesday only to give it back positive progress on Thursday after the Treasury announced the terms of next week's debt auctions. This left rates a few bps higher (vs. Monday) heading into today. Our week wrapped up with two sets of economic data and some unexpected headline news. The bond market arose this morning to news that Greece had asked the European Union and the IMF to activate…(read more)

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Mortgage rates bounced back and forth in a relatively tight range before going out at their highest levels of the week last Friday. Although prices of mortgage-backed securities managed to rally of their lows of the day, most lenders did not reprice for the better. The only economic data we got today was the First Quarter Residential Vacancies and Homeownership Report. While vacancy rates are appearing to moderate, home ownership in the U.S. has declined to a level last seen at the beginning of the decade. The greatest decrease is among the youngest homeowners. For charts and more color: READ MORE In the days ahead mortgage rates are most likely to be motivated by Treasury auctions, the FOMC meeting, and the first read on Q1 GDP. Here highlights for the week ahead: Tuesday Consumer Confidence…(read more)

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Mortgage rates yesterday recovered the rate sheet losses lenders passed along to consumers last Friday. The was no specific reason for the modest improvement. Economic data was absent and trading activity was slow. For the most part, lenders were able to share small gains because mortgage-backed security prices rallied late Friday afternoon following a morning sell-off. The majority of lenders did not reprice for the better on Friday, so we were due to get that pricing back yesterday morning. To remind readers, as benchmark Treasury yields fall, prices of mortgage-backed securities move higher, which allows lenders to offer lower mortgage rates. As Treasury yields rise, mortgage-backed security prices are led lower, which forces lenders to push mortgage rates higher. We had a few economic data…(read more)

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