Mortgage rates were lower yet again, for the 10th consecutive day without rates moving higher. Since the September 6th jobs report, rates have only risen once. Conforming, 30yr Fixed rates are now down to 4.375% (4.375%) or amazingly efficient combinations of closing costs and rates though several lenders. Everyday we receive more proof that the FOMC announcement and recent Employment Situation Report marked and confirmed at least a short term turning point for interest rates. This is the correction that we’d been hoping for, and we’re now a day or two into it with high hopes.
Matthew Graham – Chief Operating Officer, Mortgage News Daily / MBS Live wrote in an article today: “Markets are comfortable treating early September rates as near term highs as long as the economic data doesn’t surprise to the upside. That means that the fate of rates is tied to the economic reports that come out most mornings. Stronger data will gradually persuade investors that the Fed will reduce the pace of bond buying sooner than later. On some small scale, that was a risk this morning, but Consumer Confidence came in slightly weaker than forecast, and rates continued to improve. We’ll face similar risks with tomorrow’s data, but it will either take a concerted effort from several reports or a strong Employment Situation report on Oct 4 to completely dash the dreams of this low-rate rebellion. Between now and then we’ll likely see some ups and downs, as opposed to the exclusively flat-to-sideways bias we’ve had since Sep 6th.”