Mortgage Rates Go Down

Mortgage payments the bond market is planning ahead, and it’s been an uneventful week for bonds! This means there has not been much change in mortgage rates compared to the changes typically seen in the past year.

Bonds started the day in stronger territory before falling due to data from the Bank of Canada’s top official. Not that the Bank of Canada is a major source of inspiration for the US credit market. Instead, it’s just the most relevant story available to today’s marketers. In addition, when a foreign central bank does or says something that is very important to its administration, the effects tend to extend to other major central banks, but to a lesser extent.

All that to say interest experienced an upward pressure in the middle of the day. Mortgage lenders didn’t see enough weakness to make major changes to their rates, but some of them delayed offering rate hikes until the afternoon. Those improvements were ultimately made possible by debt restructuring.

Keep in mind that all of these “improvements” mentioned above are microscopic in the big picture. The average given is right in line with yesterday’s prices for the most part, but technically it’s a bit lower if we’re splitting hairs. Borrowers will likely see the same rate as yesterday but lower rates going forward, depending on the borrower (and whether the lender offered a better rate yesterday, which many did).

The easiest way to frame today’s action is to say that the afternoon low is about as low as we’ve seen this week and not as low as last week. .

Leave a Comment