Mortgage Rates Drop Sharply, Hitting Lowest Levels Since Mid-September

Mortgage rates had been in a holding pattern for nearly 3 weeks following the November 10th CPI inflation data. On that single day, the average 30yr fixed rate fell by a record amount (as far as day-over-day record keeping is concerned, and we don't have daily records prior to 2009). That took rates from the low 7s to the mid 6's in a matter of hours and there they've stayed until this morning. The timing of today's improvement depends on the lender in question to some extent. Several lenders offered fairly aggressive improvements yesterday. This was in response to a well-received speech from Fed Chair Powell and stronger than expected bond buying as a part of the month-end trading process (bond buying is good for rates, all other things being equal). Those friendly events happened late enough in the day that the average lender wasn't able to adjust their rates accordingly until this morning. All that needed to happen was for the bond market to hold relatively steady overnight. It did. The result is easily the best day of improvement since November 10th, and one of the better days of 2022. The average borrower would be seeing rates that are 0.25% lower versus yesterday morning at the average lender (i.e. 6.5% is now 6.25%). Friday brings the important Employment Situation (the official jobs report from the Department of Labor). The Fed is primarily focused on inflation, but labor market data is a not-too-distant second. If job creation comes in weaker--especially if wage growth decreases--the Fed will increasingly conclude it has less room to be aggressive in its fight against inflation without doing serious damage to the economy. All other things being equal, that would make for another good day for rates.

December 1, 2022 Download our Mobile App: Download our Mobile App: Mortgage Rate Watch Mortgage Rates Drop Sharply, Hitting Lowest Levels Since Mid-September Mortgage rates had been in a holding pattern for nearly 3 weeks following the November 10th CPI inflation data. On that single day, the average 30yr fixed rate fell by a record amount (as far as day-over-day record keeping is concerned, and we ... (read more) MBS Commentary Bonds Look Like They're Expecting Good News Bonds Look Like They're Expecting Good News We came into the day with a disclaimer about modest losses still constituting a victory due to Wednesday afternoon's big rally. That was only relevant for a f... (read more) Rob Chrisman HELOC, Non-Agency, Valuation, Co-issue, DEI Hiring Products; Events and Training Our industry continues to be battered. Starwood Capital-backed Reverse Mortgage Funding and its parent company Reverse Mortgage Investment Trust have filed for bankruptcy. Inlanta Mortgage told the state of Wisconsin it plans to wind down its busines... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.29% -0.34% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.29% -0.34 0.00 15 Yr. Fixed 5.75% -0.23 0.00 30 Yr. FHA 5.75% -0.37 0.00 30 Yr. Jumbo 5.75% -0.19 0.00 5/1 ARM 5.99% -0.24 0.00 30 Yr. VA 5.80% -0.35 0.00 Updates Daily - Last Update: 12/1 15 Yr. Fixed Rate 5.75% -0.23% Rate Change Points Freddie Mac 30 Yr. Fixed 6.49% -0.09 0.00 15 Yr. Fixed 5.76% -0.14 0.00 Updates Weekly - Last Update: 12/1 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.67% -0.23 0.68 15 Yr. Fixed 6.08% -0.19 0.70 30 Yr. Jumbo 6.30% -0.21 0.74 Updates Weekly - Last Update: 11/23 MBS / Treasuries UMBS 30YR 5.0 100.19 +0.38 Price / Yield Change MBS UMBS 5.0 100.19 +0.38 UMBS 5.5 101.63 +0.31 GNMA 5.0 100.39 +0.23 GNMA 5.5 101.44 +0.17 Pricing as of: 12/1 5:31PM EST 10 Year US Treasury 3.5084 -0.1025 Price / Yield Change US Treasury 2 YR Treasury 4.232 -0.097 5 YR Treasury 3.668 -0.084 7 YR Treasury 3.599 -0.091 10 YR Treasury 3.508 -0.103 30 YR Treasury 3.601 -0.145 Pricing as of: 12/1 5:31PM EST Latest Video Housing has a fair amount of room to fall, says Morgan Stanley's Egan I worry about the Fed's previous and upcoming tightening, says Wells Fargo'... Fed's key inflation gauge grew 5% year-over-year in October The 2pm Bond Report - December 1, 2022 Around the Web HUD FHA Announces Updated Loan Limits at 472,030, as Expected Calculated Risk Rents Falling Faster than "Seasonality Alone" Eye on Housing Apartment Absorption Rate Reaches 25-year High CNBC Key inflation measure that the Fed follows rose 0.2% in October, less than expected Calculated Risk Blog Fed Chair Powell: "The time for moderating the pace of rate increases may come as soon as the December meeting" Eye on Housing October Private Residential Spending Falls CNBC Economist Austan Goolsbee named next Chicago Fed president CNBC Fed Chair Powell says smaller interest rate hikes could start in December CNBC Job cuts rise in November, causing employees to shift focus to 'career cushioning' Calculated Risk Blog ISM Manufacturing index Declined to 49.0% in November Calculated Risk Blog Weekly Initial Unemployment Claims decrease to 225,000 CNBC 10-year Treasury yield slides as traders weigh Fed policy outlook, await key economic data CNBC Watch Fed Chair Jerome Powell speak on the economy and monetary policy

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