Mortgage Rates in the Eye of the Storm
Rates in the mortgage loan market remained steady today. Current rates put the market on par with the very best performance for September so far. For the past eleven days, rates either remained the same or climbed higher. However, we are likely to see some volatility in the near future.
The recent upward trend is likely based on anxieties stemming from the upcoming Fed announcement, where it is expected that Federal policy will be changed in favor of an early rate hike. When such an event occurs, bond markets have a tendency to weaken, which in turn causes mortgage rates to rise.
Despite this, bond markets were actually stronger today. However, it was not enough to allow for significant improvement in mortgage lender’s sheets. Some lenders improved and some grew weaker, with an overall effect of “unchanged” over last Friday.
