Mortgage Rates On Bumpy Road

To say that mortgages rates have had a bumpy ride this past summer is an understatement. According to Mortgage News Daily “2019 has been the best year for mortgage rates since 2011. Big, long-lasting improvements such as this one are increasingly susceptible to bounces/corrections and as of September, it looks like such a correction is underway… there's a risk that rates will hesitate to make any further improvements this week. Today's modest weakness serves as a softly-worded warning to that effect, but we'd need to see several more days of higher rates in order to confirm that sort of upward momentum. As of today, it's a risk to keep an eye on.”

If you didn’t refinance or have put off that purchase, you may want to reconsider. 

There are two key data reports coming in this week, the Producer Price Index tomorrow and weekly Consumer Price Index on Thursday as well. 

The Fed does influence the relative market price of credit when it purchases agency MBS, and this indirectly influences decisions by investors. The last time we saw this much supply in 3, 10 and 30 year was the second week of September.  

UPDATE: 10/08/2019 :36 PM PST

The bond market did very little in the way of dramatic sell off today. As Mortgage News Daily stated: "There was no overt source of pessimism and the pace of movement lacked a sense of urgency."

This lack of urgency may suggest a change is coming.