Mortgage Rates Finish Higher After Starting Strong
November 12, 2014
Mortgage rates began the day lower, but not too far from Monday's latest levels. As the day progressed, the bond markets that underlie rate movements grew progressively weaker. Most lenders put out negative "reprices" meaning they stopped accepting locks and released new rate sheets with higher costs. The afternoon's rate sheets were slightly worse than Monday's latest. This keeps the most prevalently-quoted conforming 30yr fixed rate in limbo between 4.0 and 4.125% for top tier borrowers.
There were no significant calendar events conspiring to push rates higher today, which is both scary and hopeful. It's scary because it can suggest an underlying, innate bias toward higher rates, but hopeful because there could be less conviction in that move compared to one that arises due to clearly-defined motivation. As long as we're not breaking into new recent highs, there is still some hope that a broader shift toward lower rates (the tacit suggestion from Friday's high-conviction gains) will materialize.
There were no significant calendar events conspiring to push rates higher today, which is both scary and hopeful. It's scary because it can suggest an underlying, innate bias toward higher rates, but hopeful because there could be less conviction in that move compared to one that arises due to clearly-defined motivation. As long as we're not breaking into new recent highs, there is still some hope that a broader shift toward lower rates (the tacit suggestion from Friday's high-conviction gains) will materialize.
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