Today’s Mortgage Rates showed a calm market.
In spite of the European Central Bank ECB today’s policy announcement, mortgage rates barely move from yesterday’s closing. The relatively calm reaction in bond markets (and the absence of changes in lender rate sheets) suggests traders were already in position for this event and may be increasingly tuned out until next week.
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Today’s FHA 30-yr mortgage rate is still in 3.70%, the conforming 30-yr mortgage rate was 4.03% and the jumbo 30-yr mortgage rate was 4.32%. Today’s mortgage rates were barely the same as yesterday’s, lower than last week and higher than last month.
The European Central Bank delayed discussion over whether to wind down its giant bond-buying program, underlining a recent tone of caution from global policy makers as they fight weak inflation. That’s a good thing considering much of the recent gains in rates can be attributed to traders growing more optimistic about the ECB’s stance. This puts downward pressure on rates around the world (more so in Europe than in the US, but we still get some indirect benefit)
The relatively calm reaction in bond markets (and the absence of changes in lender rate sheets) suggests traders were already in position for this event and may be increasingly tuned out until next week. For now, the short-term trend is positive, but we haven’t been able to improve many past current levels. Risk-averse borrowers should increasingly consider locking while risk-tolerant borrowers should simply remain on-guard for a reversal next week.
Ted Rood, Senior Originator comments were:”Bond markets weathered both ECB and BOJ policy statements, as neither central banks’ commentary indicated imminent tapering concerns. My pricing today improved roughly 12 bps over yesterday’s, a decent gain. It’s also increasingly apparent that tax reform (and the implied economic growth from it) will not happen this year, another bond friendly development. Next week may bring some end of month demand, and improved pricing, I’m inclined to float short term, for the moment anyway”.
In case you need more and information about current mortgage rates, or need to talk with a mortgage lender, please don’t hesitate to contact me clicking here.
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