Mortgage Rates Start Higher, But Fall in Afternoon

More often than not, mortgage lenders only set rates once a day. Their decisions are based on trading levels in the underlying bond market. Even though bonds are constantly moving, it doesn't make sense for lenders to make a change unless a certain threshold of market movement is surpassed. The result is what the industry refers to as a "mid day reprice." The AM hours saw a handful of lenders reprice for the worse (i.e. toward higher rates) as bonds lost ground after the ISM Services report (a closely-watched economic report that tends to influence the bond market if it comes in much higher or lower than forecast). Today's ISM data was much stronger, thus pushing bond yields higher. The afternoon hours were not as easy to connect to root causes and obvious motivations. One can only assume that we continue witnessing a substantial amount of pre-election volatility in the bond market. While that's mostly worked against rates, the opposite was true this afternoon. The improvement allowed most lenders to update their rate offerings. All told, the average lender moved from what were just barely the highest levels in months this morning, back to just a hair below yesterday's levels. As you've probably heard, it's election day and while this remains the biggest source of potential volatility, that volatility won't begin to play out for rates until tomorrow morning at the earliest.

November 5, 2024 Download our Mobile App: Download our Mobile App: Mortgage Rate Watch Mortgage Rates Start Higher, But Fall in Afternoon More often than not, mortgage lenders only set rates once a day. Their decisions are based on trading levels in the underlying bond market. Even though bonds are constantly moving, it doesn't make sense for lenders to make a change unless a cer... (read more) MBS Commentary Bonds Still Willing to React to Econ Data Last week could easily have left us with the impression that the bond market's love affair with economic data was put on hold until after the election. One could even claim that Friday's jobs report was ultimately ignored in favor of "something... (read more) Rob Chrisman Customer Intelligence, LOS, AVM, Hedging Tools; CU, DOJ, and Redlining; Freddie and Fannie Changes I think that I read somewhere that there’s an election today (in addition to the Boeing strike ending). Certainly, the sun will come up tomorrow, and people will still want to own a home. For me, this morning involves a flight to Minneapolis for the ... (read more) Mortgage Rates 30 Yr. Fixed Rate 7.04% -0.01% Rate Change Points Mortgage News Daily 30 Yr. Fixed 7.04% -0.01 0.00 15 Yr. Fixed 6.47% +0.07 0.00 30 Yr. FHA 6.57% 0.00 0.00 30 Yr. Jumbo 7.14% +0.03 0.00 7/6 SOFR ARM 6.95% +0.01 0.00 30 Yr. VA 6.58% 0.00 0.00 Updates Daily - Last Update: 11/5 15 Yr. Fixed Rate 6.47% +0.07% Rate Change Points Freddie Mac 30 Yr. Fixed 6.72% +0.18 0.00 15 Yr. Fixed 5.99% +0.28 0.00 Updates Weekly - Last Update: 10/31 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.73% +0.21 0.69 15 Yr. Fixed 6.27% +0.29 0.77 30 Yr. Jumbo 6.77% +0.04 0.49 Updates Weekly - Last Update: 10/30 MBS / Treasuries UMBS 30YR 5.5 99.42 +0.25 Price / Yield Change MBS UMBS 5.5 99.41 +0.24 UMBS 6.0 100.91 +0.19 GNMA 5.5 99.73 +0.18 GNMA 6.0 101.00 +0.17 Pricing as of: 11/5 5:31PM EST 10 Year US Treasury 4.2773 -0.0074 Price / Yield Change US Treasury 2 YR Treasury 4.190 +0.028 5 YR Treasury 4.158 +0.016 7 YR Treasury 4.218 -0.001 10 YR Treasury 4.277 -0.007 30 YR Treasury 4.441 -0.024 Pricing as of: 11/5 5:31PM EST Latest Video Housing affordability weighs on voters during election US homeowners have record equity The Fed should look through the weaker-than-expected October jobs report, s... U.S. factory orders fall by 0.5% in September Around the Web CNBC Average age of first-time homebuyers is 38, an all-time high. Here's what that says about the real estate market Marketwatch The biggest part of the U.S. economy posts fastest growth in more than two years, ISM finds CNBC More homeowners just started pulling cash out of their properties. Here's why. Reuters US yields dip as 'Trump trades' unwind in tight presidential race CNBC As the election winds down, worries of 'bond vigilantes' and inflation hit markets Calculated Risk Blog In Q2, almost 20% of Units Started Built-for-Rent were Single Family Eye on Housing Residential Building Wages Grow at Unprecedented Rate Calculated Risk Blog ISM Services Index Increases to 56.0% in October CNBC Treasury yields little changed as the U.S. prepares to vote Calculated Risk Blog ICE Mortgage Monitor: "Annual home price growth cooled for the seventh consecutive month" Eye on Housing Student Housing Construction Investment Rises in the Third Quarter of 2024 Calculated Risk Blog Trade Deficit Increased to $84.4 Billion in September Calculated Risk Blog Construction Spending Increased 0.1% in September

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