Mortgage rates are coming off a solid performance last week after having moved to the lowest levels in 5 months by Thursday afternoon. This week is shaping up to be a bit different , however. In fact, as of this afternoon, the average lender has lost most of last week’s improvements. What’s behind the volatility? There are both general and specific considerations. In a general sense, last week’s bond market gains (stronger bonds = lower rates) were perhaps a bit overdone. They set the stage for a potential correction purely for technical reasons. In other words, nothing new or notable changed after last Thursday to push rates back up–at least not until today. Today brought the specific considerations with a double whammy from inflation data and a Treasury bond auction. The consumer price index
Mortgage Rates Newsletter – Market Analysis