Mortgage payments was taken down at a rapid pace today after many free friendly titles. Technically, the headlines were good for the bond market, but the data was responsible for determining day-to-day changes in mortgage rates.
The first development came late last night when the Bank of Japan (BOJ) kept its monetary policy unchanged. Markets expected the BOJ to make a tweak that could put pressure on rates. When no such tweak was announced, the bonds heaved a sigh of relief.
In US trading, weak economic data added strength to the bond market rally. A weak economy goes hand in hand with low prices, all other things being equal. Today’s midpoint is a 1.1% drop in Retail Sales for the month of December as well as a negative revision that increased November’s slide from -0.6% to -1.0%.
Other data also proved helpful, but most of the gains were recorded after the Stock Exchange. When there are surpluses, mortgage brokers can offer lower rates. And that’s exactly what they did. The average money supply was down 6% and today’s price is just a hair higher than last Thursday. And, as of now, you have to go back more than 4 months to see a low point.