Summary:
Mortgage rates experienced a minor shift heading into the weekend due to movements in the bond market on Friday. Bonds improved after initial mortgage rate announcements, though sharper improvements could have led to mid-day rate adjustments. Unfortunately, bond losses over the weekend negated Friday’s gains, resulting in a slight increase of 0.02% in top-tier 30-year fixed rates. Despite this, average rates remain within a stable 0.10% range since late October. Market closure for Veterans Day and potential government shutdown developments could introduce volatility when trading resumes.
What This Means for You:
- Monitor bond market trends closely, as they directly influence mortgage rate fluctuations.
- If you’re planning to lock in a mortgage rate, consider acting before Wednesday’s market reopening to avoid potential increases.
- Stay informed about government shutdown developments, as they could impact mortgage rates significantly.
- Be prepared for slight volatility in the near term, especially if the government reopens.
Original Post:
Mortgage rates went into the weekend with a small cushion thanks to movement in the bond market on Friday. Specifically, bonds improved after mortgage rates came out for the day. If the improvement had been sharper, mortgage lenders likely would have made a mid-day adjustment to slightly lower levels. The implication was that rates would have been slightly lower this morning if bonds managed to hold the same levels over the weekend.
Unfortunately, bonds lost enough ground to overshadow Friday’s cushion, just slightly. The net effect is an average top-tier 30yr fixed rate that is 0.02% higher versus Friday morning—a minimal change considering the day-over-day losses in the bond market.
With that, the average lender remains well inside the 0.10 range that’s been in place since October 29th.
Bond markets are closed tomorrow for Veterans Day. When markets reopen on Wednesday, the prospects for ending the government shutdown may be coming into clearer view and that could cause enough market volatility to spill over into rates. If today’s trading was any clue, a “reopening” event is more likely to put upward pressure on rates, but today’s rate increase could already be reflecting those expectations.
Extra Information:
For further insights on mortgage rate trends, check out these resources: Mortgage Rates Explained and Mortgage Rate Trends. These links provide detailed explanations and forecasts related to the factors influencing mortgage rates.
People Also Ask About:
- What causes mortgage rates to fluctuate? Mortgage rates are influenced by bond market movements, economic indicators, and Federal Reserve policies.
- How often do mortgage rates change? Rates can change daily, depending on market conditions and lender adjustments.
- Should I lock in my mortgage rate now? If rates are currently favorable, locking in can protect against future increases.
- How does a government shutdown affect mortgage rates? Market uncertainty during a shutdown can lead to volatility, potentially pushing rates higher.
Expert Opinion:
“While recent fluctuations in mortgage rates have been minimal, the upcoming market reopening and potential government reopening are critical factors to watch. Borrowers should remain vigilant, as these events could introduce volatility and upward pressure on rates in the near term.”
Key Terms:
- Mortgage rate trends 2023
- Bond market impact on mortgage rates
- 30-year fixed mortgage rate changes
- Government shutdown mortgage implications
- Mortgage rate volatility forecast
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