Drama and Excitement Remain on Vacation in The Mortgage Rate World

Rates are driven by bonds and mortgage rates are driven by mortgage-backed bonds. These bonds trade in the open market all day every day. Mortgage lenders set their rates based on the movement in those bonds. Thanksgiving week tends to sap a significant amount of participation from the bond market. It's not that things aren't moving. They just aren't moving like normal. Price movements can be more random and there can be more misdirection plays where it looks like things are heading quickly in one direction only for things to reverse moments later (and then again moments after that, and so on...). Lenders also know that an extended weekend lies ahead for the rate environment. Weekends always bring in some small amount of defensiveness (i.e. setting rates a bit higher than they otherwise might just in case something happens over the weekend). 4 day weekends suggest twice as much defensiveness. All that to say that the mortgage rate creation process is about as slow and quiet as it gets at any time of year apart from the end of December. It also means that mortgage rates may not always move in the direction implied by bonds. For instance, today's bond market movement suggested slightly lower rates. Instead, the average lender was slightly higher. Expect things to get back closer to normal next week, but for the market to continue to wait until December 13th and 14th for the biggest moves. That's when we get the next major inflation report and the Fed announcement, respectively.

November 22, 2022 Download our Mobile App: Download our Mobile App: Mortgage Rate Watch Drama and Excitement Remain on Vacation in The Mortgage Rate World Rates are driven by bonds and mortgage rates are driven by mortgage-backed bonds. These bonds trade in the open market all day every day. Mortgage lenders set their rates based on the movement in those bonds. Thanksgiving week tends to s... (read more) MBS Commentary Light Participation Limits MBS Gains as Treasuries Shrug Off Weak Auction Light Participation Limits MBS Gains as Treasuries Shrug Off Weak Auction Today's 7yr Treasury auction was one of the only actionable items on today's calendar. It came out much weaker than expected and... (read more) Rob Chrisman PPE, CRM, DPA, Pre-Approval, Subservicing Products; RMF Exits Reverse; Carrington's Response to CFPB When was the last time that you did something for the first time? (Warning: tissues may be needed.) The best use of technology is to improve quality of life. Watch people’s beautiful first expressions of hearing sounds for the first time. (This came ... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.65% +0.01% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.65% +0.01 0.00 15 Yr. Fixed 6.07% +0.01 0.00 30 Yr. FHA 6.28% +0.03 0.00 30 Yr. Jumbo 6.03% +0.03 0.00 5/1 ARM 6.28% +0.04 0.00 30 Yr. VA 6.33% +0.03 0.00 Updates Daily - Last Update: 11/22 15 Yr. Fixed Rate 6.07% +0.01% Rate Change Points Freddie Mac 30 Yr. Fixed 6.61% -0.47 0.00 15 Yr. Fixed 5.98% -0.40 0.00 Updates Weekly - Last Update: 11/17 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.90% -0.24 0.56 15 Yr. Fixed 6.27% -0.13 0.73 30 Yr. Jumbo 6.51% +0.01 0.64 Updates Weekly - Last Update: 11/16 MBS / Treasuries UMBS 30YR 5.0 98.92 +0.41 Price / Yield Change MBS UMBS 5.0 98.92 +0.41 UMBS 5.5 100.56 +0.31 GNMA 5.0 99.31 +0.34 GNMA 5.5 100.47 +0.22 Pricing as of: 11/22 5:31PM EST 10 Year US Treasury 3.7578 -0.0822 Price / Yield Change US Treasury 2 YR Treasury 4.519 -0.044 5 YR Treasury 3.946 -0.078 7 YR Treasury 3.884 -0.064 10 YR Treasury 3.758 -0.082 30 YR Treasury 3.827 -0.080 Pricing as of: 11/22 5:31PM EST Latest Video Fixed income is an alternative like it hasn't been in a while, says Morgan ... Investor home purchases plunge 30% annually This is the worst fixed-income year in the history of bonds, says JP Morgan... The 9am Bond Report - November 22, 2022 Around the Web Calculated Risk Blog Lawler: Likely "Dramatic shift" in Household Formation has "Major implications" for 2023 CNBC Biden administration will extend student loan debt repayment holiday to June, reports say Black Knight Black Knights First Look at October 2022 Mortgage Data CNBC Investors' home purchases drop 30% as price increases slow down Eye on Housing New Single-Family Home Size Trending Lower Wall Street Journal Investor Home Purchases Drop 30% as Rising Rates, High Prices Cool Housing Market Eye on Housing 97% Built-for-Rent Multifamily Construction Share Calculated Risk Blog Final Look at Local Housing Markets in October Calculated Risk Blog Black Knight: Mortgage Delinquency Rate Increased in October, Impacted by Hurricane CNBC Treasury yields pull back as investor attention turns to Fed speaker remarks Calculated Risk Blog Housing November 21st Weekly Update: Inventory Decreased Slightly Week-over-week Brookings Inst. Are new housing policy reforms working? We need better research to find out. CNBC European markets head for higher open as investors shrug off economic fears

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