Mortgage Rates Continue Fighting To Build A Ceiling
by: Matthew Graham
Mortgage rates stayed mostly steady today, on average. For the record, that means some lenders were in slightly better shape versus yesterday's latest levels while others were in worse shape. This is always the case on days where rates remain unchanged on average, but the discrepancies can be larger than normal at the moment due to recent volatility.
With it being a shortened holiday week (bond markets closed on Thursday and only nominally open on Friday), today is essentially the last day with meaningful market participation. While it seems that rate volatility has died down significantly for now, the more recent an episode of major volatility, the more susceptible rates can be to aftershocks. It could easily be the case that we see no such aftershock, but it's still a bit soon to trust the recent rate ceiling and hope for improvements.
If we do see improvements, they'd likely be fairly contained for a few key reasons. Chief among these is the fact that the financial world must wait for one of two things before rates have a chance of major improvement. We'd either need to see some big shock or we'll simply have to wait for clarity on Trump's policy path. And we can't possibly get enough clarity about the policy path until Trump actually takes office.
Rowan Samuel has lived many lives. Originally from Zimbabwe (Rhodesia), he and his family immigrated to the U.S. in 1980 to escape the brutal Mugabe regime - they lost everything when they came to Am....