Complete Reversal as Mortgage Rates Erase Yesterday’s Gains

On a normal week, we can follow day to day movement in rates and point out how far behind the times the week-to-week changes are.  This time around, the week-to-week changes may have the upper hand due to the extreme 2-WAY volatility seen in the day-to-day movement.  Specifically, rates plunged lower at the fastest pace in years on the first 2 days of the week.  

By lunchtime on Wednesday, all of Tuesday’s gains were erased.  Since then, lenders have continued adjusting rates higher this afternoon, eating away substantially at the entirety of the week’s improvement.  

The bottom line in terms of 30yr fixed rates is that one short day after dipping below 4% for the first time since early February, the average lender is now easily back above (4.08% in terms of “effective rates”).  

For those interested in digging into underlying causality, check out the coverage on the MBS channel.

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