While mortgage rates didn’t enjoy as strong of a move lower as US Treasuries last week, they were nonetheless right in line with their best levels since late June. Any time bond markets make an abrupt move to highs or lows, there’s a risk that the subsequent move will be a correction back in the other direction. This is the case even if the longer term trends remain unchanged. It’s also especially true in cases where the market movement is fueled by unscheduled headlines, such as those surrounding the various geopolitical conflicts around the world last week.
In short, with Friday seeing a small bounce back toward higher rates, there was a risk that we’d turned a corner. Refreshingly though, markets held their ground fairly well today, and many lenders are unchanged from Friday’s latest levels. On average, rates are only modestly higher. The most prevalently-quoted conforming 30yr fixed rates for top tier borrowers remains 4.125% with 4.25% almost equally as common. http://www.mortgagenewsdaily.com/