Mortgage Rates Fully Erase Monday's Surge

Mortgage rates began the week with a moderately big jump to what were essentially the highest levels in more than a month. Less than 24 hours later and the average lender is back to last Friday's levels. What's up with that? Investors drive mortgage rate movement via the buying and selling of bonds. More buying = lower rates. More selling = higher rates. Investors sold bonds yesterday after First Republic Bank was absorbed by JP Morgan in process that was about as orderly as it could have been. But rather than rest easy on the assumption that First Republic was the last of the troubled banks, financial markets attacked the stock prices of several other banks this morning, ultimately forcing a halt to trading for several of them. Banking sector concerns lead investors to buy more bonds. That was a driving force behind today's improvement. Additional support came from slightly softer labor market data. All of the above had some traders revising their expectations for the Fed's rate hike outlook--especially timely considering there was an almost unanimous consensus for a 0.25% hike tomorrow afternoon. Between the Fed's rate hike decision and the economic data in the morning, it's safest to plan for ongoing rate volatility. For now, the average lender is back in the middle 6% range whereas it was closer to 6.75% yesterday for a top tier 30yr fixed rate.

May 2, 2023 Download our Mobile App: Download our Mobile App: Mortgage Rate Watch Mortgage Rates Fully Erase Monday's Surge Mortgage rates began the week with a moderately big jump to what were essentially the highest levels in more than a month. Less than 24 hours later and the average lender is back to last Friday's levels. What's up with that? Investors dr... (read more) MBS Commentary What a Difference a Day Makes What a Difference a Day Makes Bonds completely erased yesterday's snowball sell-off with an even bigger snowball rally in the mid-morning hours. Motivations were twofold. Drama began at 9:30 as ba... (read more) Rob Chrisman Recruitment, Marketing, Database, MSR Valuation Products; News From Freddie and Fannie; Jumbo Pricing Concerns If you’re really happy when a scheduled conference or Zoom call is cancelled, does that mean you’re in the wrong line of work? (Asking for a friend.) The demand for Team or Zoom calls certainly skyrocketed during the pandemic, although as companies h... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.58% -0.15% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.58% -0.15 0.00 15 Yr. Fixed 6.00% -0.12 0.00 30 Yr. FHA 6.20% -0.10 0.00 30 Yr. Jumbo 6.20% -0.10 0.00 5/1 ARM 6.75% -0.06 0.00 30 Yr. VA 6.19% -0.12 0.00 Updates Daily - Last Update: 5/2 15 Yr. Fixed Rate 6.00% -0.12% Rate Change Points Freddie Mac 30 Yr. Fixed 6.43% +0.04 0.00 15 Yr. Fixed 5.71% -0.05 0.00 Updates Weekly - Last Update: 4/27 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.55% +0.12 0.63 15 Yr. Fixed 6.03% +0.14 0.56 30 Yr. Jumbo 6.40% +0.12 0.50 Updates Weekly - Last Update: 4/26 MBS / Treasuries UMBS 30YR 5.0 99.50 +0.56 Price / Yield Change MBS UMBS 5.0 99.50 +0.56 UMBS 5.5 100.86 +0.41 GNMA 5.0 99.58 +0.44 GNMA 5.5 100.64 +0.28 Pricing as of: 5/2 5:31PM EST 10 Year US Treasury 3.4276 -0.1424 Price / Yield Change US Treasury 2 YR Treasury 3.965 -0.176 5 YR Treasury 3.452 -0.182 7 YR Treasury 3.442 -0.162 10 YR Treasury 3.428 -0.142 30 YR Treasury 3.714 -0.095 Pricing as of: 5/2 5:31PM EST Latest Video Home prices rise as inventory drops PIMCO CEO Emmanuel Roman: We expect the Fed to raise rates by 25 bps and th... CNBC Fed Survey respondents expect rates to stay high for eight months Job openings declined to 9.59 million in March Around the Web CNBC PacWest falls 30% as regional banks stocks slide to new lows The Basis Point Who wins as Jamie Dimon squashes First Republic jumbo mortgage specialty? CNBC Home prices are back on the rise as the spring market proves competitive Eye on Housing Construction Job Openings Trending Lower Calculated Risk Blog CoreLogic: House Prices up 3.1% YoY in March, Lowest Annual Growth Rate since early 2012 Calculated Risk Blog A Policy Proposal to Increase the Utilization of the Current Housing Stock Calculated Risk Blog BLS: Job Openings Decreased to 9.6 million in March CNBC Treasury yields fall as investors await Fed meeting, weigh policy expectations Calculated Risk Blog ISM Manufacturing index Increased to 47.1% in April CNBC Headline inflation in the euro zone rises slightly in April, but core price growth slows unexpectedly CNBC Lawmakers praise First Republic sale, but efforts to pass new bank rules are fizzling Eye on Housing Private Residential Construction Spending Dips in March Calculated Risk Blog Construction Spending Increased 0.3% in March

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