Mortgage Rates up or down? May 22, 2017

Mortgage Rates were slightly higher today for the 3rd straight day, continuing a modest bounce back from the year’s lowest rates last Wednesday. ?In a nutshell, bond markets (which dictate mortgage rates) reacted in a big way to last week’s political headlines, and have since been biding their time as markets wait for further developments. ?In the current case, “biding time” has meant a nominal pull-back from Wednesday’s stellar levels–not uncommon in similar cases where unexpected headlines drive a somewhat panicked move in financial markets.

While the general movement in rates has been slightly higher, it hasn’t lifted rates much above 2017’s lows. ?Especially when considered next to anything before last Wednesday, recent rate offerings have been low and the trend has been sideways. ?Most lenders continue to offer conventional 30yr fixed rates of 4.0% on top tier scenarios. ?The only difference from Friday would be marginally higher upfront costs, but several lenders are effectively “unchanged.”