Article Summary
Mortgage rates experienced a minor increase on Monday due to economic data causing weakness in the bond market. However, most lenders did not change their rates from Friday’s levels. This slight increase in rates is dependent on the bond market’s movements overnight.
What This Means for You
- Be aware that minor fluctuations in mortgage rates can occur daily due to market movements.
- Mortgage rates are not set in real-time and can only change when the bond market experiences significant volatility.
- Consider locking your mortgage rate if fluctuations make you uncomfortable, even if the increase is small.
- Stay informed about market trends and their potential impact on mortgage rates.
Original Post
Mortgage rates faced a slight headwind on Monday as economic data caused weakness in the bond market. This would typically result in higher mortgage rates, but in today’s case, the damage was minimal.
One thing to keep in mind is that mortgage rates don’t change in real time with the market. Lenders set rates once in the morning and only change them when the bond market experiences a certain threshold of volatility. A small handful of lenders met that threshold and ended up raising rates this afternoon, but the average lender remained right in line with Friday.
The implication is that if the bond market were to start tomorrow exactly where it’s ending today, most lenders would be in a position to set tomorrow’s rates slightly higher. This is purely hypothetical, however as there’s no way to know which direction bonds will move overnight.
Key Terms
- Mortgage rates
- Bond market
- Bond market volatility
- Lender rates
- Market trends
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