Mortgage Rates Hold Going Into Labor Day Weekend
Going into Labor Day weekend, mortgage rates remained more or less unchanged. While some mortgage lenders saw some increases and some saw some decreases, a majority showed a negligible difference, or no difference at all.
The lack of improvement this past week is notable, as recent activity in the underlying markets that most strongly affect mortgage rates should be driving improvement. Not only are mortgage-backed securities in good shape, but the European markets are also serving to bring US rates lower than they might otherwise be.
In part, this can be attributed to the three-day weekend. Such events, particularly when they come at the end of a month, have historically hampered improvement in the market. For a lender, it is risky to make commitments ahead of a long weekend. This is all the more true during times of geopolitical uncertainty. We may therefore expect more activity in the coming weeks, and look forward to some potential improvement.
