Mortgage Rates Drop to 3-Month Lows

Mortgage rates are based primarily on the bond market (specifically, mortgage-backed securities or MBS). When MBS improve, lenders are creating loans that are worth more money and can thus offer them at lower rates. Supply, demand, etc. Today's rates improved by more than would be suggested by the improvement in MBS, so there's clearly something else going on as well. In today's case, it's quite simply the mortgage market's sigh of relief after having moved through the week's riskiest events (inflation data on Tuesday and the Fed announcement on Wednesday). The market volatility following the Fed is so late in the day that lenders seldom adjust their mortgage rates to match the bond market reality. Things often change the following morning anyway. Bottom line: it makes sense to wait for Thursday morning following a Wednesday afternoon Fed announcement before fully adjusting rates for changes in the bond market. It's a familiar song and dance. This time around, it coincided with MBS at their best levels in more than 3 months and mortgage rates were quickly able to make the same claim. The average conventional 30yr fixed rate is moving into the low 6% range for top tier scenarios. Aggressive lenders are quoting in the high 5's. The last time rates were this low was during the first few days of September. As long as nothing too crazy happens with inflation or economic data, this week all but confirms that rates topped out in late October. [thirtyyearmortgagerates]

December 15, 2022 Download our Mobile App: Download our Mobile App: Mortgage Rate Watch Mortgage Rates Drop to 3-Month Lows Mortgage rates are based primarily on the bond market (specifically, mortgage-backed securities or MBS). When MBS improve, lenders are creating loans that are worth more money and can thus offer them at lower rates. Supply, demand, etc. ... (read more) MBS Commentary Bonds Stay Resilient as Traders Begin Punching Out For The Holidays Bonds Stay Resilient as Traders Begin Punching Out For The Holidays After starting flat, bonds were under pressure for 15 minutes following the European Central Bank (ECB) announcement. EU bonds remaine... (read more) Rob Chrisman Point of Sale, QC, LOS Products; STRATMOR on Customer Service; Academy, False Claims, and $38.5 Million Anyone who has ever gone swimming in the ocean knows that, in a violent surf, the swimmer can’t spend time and energy in the waves near the shore being knocked about. They either swim out beyond them, or swim into the beach. Using that analogy, think... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.13% -0.14% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.13% -0.14 0.00 15 Yr. Fixed 5.45% -0.20 0.00 30 Yr. FHA 5.68% -0.07 0.00 30 Yr. Jumbo 5.50% -0.15 0.00 5/1 ARM 5.81% +0.02 0.00 30 Yr. VA 5.72% -0.08 0.00 Updates Daily - Last Update: 12/15 15 Yr. Fixed Rate 5.45% -0.20% Rate Change Points Freddie Mac 30 Yr. Fixed 6.31% -0.02 0.00 15 Yr. Fixed 5.54% -0.13 0.00 Updates Weekly - Last Update: 12/15 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.42% +0.01 0.64 15 Yr. Fixed 5.92% +0.08 0.54 30 Yr. Jumbo 6.14% +0.06 0.42 Updates Weekly - Last Update: 12/14 MBS / Treasuries UMBS 30YR 5.0 100.33 +0.14 Price / Yield Change MBS UMBS 5.0 100.33 +0.14 UMBS 5.5 101.55 +0.06 GNMA 5.0 100.48 +0.19 GNMA 5.5 101.38 +0.09 Pricing as of: 12/15 5:31PM EST 10 Year US Treasury 3.4518 -0.0272 Price / Yield Change US Treasury 2 YR Treasury 4.243 +0.027 5 YR Treasury 3.621 +0.005 7 YR Treasury 3.563 -0.004 10 YR Treasury 3.452 -0.027 30 YR Treasury 3.502 -0.033 Pricing as of: 12/15 5:31PM EST Latest Video The Fed is tightening way too much, says Wharton's Jeremy Siegel Investor home flipping profits hit 13-year low as profit margins drop signi... The Fed has to remain hawkish in its remarks, says Ritholtz's Josh Brown Industrial production fell 0.2% in November versus forecasted 0.1% increase Around the Web FHA FHA Revises Dual Employment Requirements and Clarifies Other Conflict of Interest Policies Eye on Housing Nearly Two-Thirds of Homes Started in 2021 are in Community Associations CNBC The Fed projects raising rates as high as 5.1% before ending inflation battle Calculated Risk Blog Current State of the Housing Market; Overview for mid-December CNBC Retail sales fell 0.6% in November as consumers feel the pressure from inflation Calculated Risk Blog Realtor.com Reports Weekly Active Inventory Up 55% Year-over-year; New Listings Down 16% CNBC Fed raises interest rates half a point to highest level in 15 years CNBC When will the Federal Reserve ease its rate hikes and inflation fight? Keep an eye on your annual raise Wall Street Journal BOE Raises Rates by 0.5 Point, Slowing Pace of Tightening CNBC Health insurance is helping cool inflation. But 'it's not a very good reflection' of what people pay, cautions economist CNBC Bank of England tipped for half-point rate hike as inflation shows signs of peaking Calculated Risk Blog AIA: Architecture Billings Index Declines Further in November CNBC Here's everything the Federal Reserve is expected to do Wednesday

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