Don't Get Too Excited About Rates
A: Just saw this news reports released via AP on Yahoo Finance, "Rates on 30-YR Mortgages Sink". This is the lagging effect of the 10YR bond yield dropping from 5.1's to 5.0% over the past week or so. However, in the past 2 trading sessions the 10-YR bond yield is UP 12 basis points and now trading around 5.12%! You know what that means. Don't expect lending rates to stay at these relief levels after the huge runup in early June! I would anticipate lending rates to rise over the next few days especially if bond yields continue their volatile upwards trend.
According to Yahoo Finance article released at 11:32EDT today:
Rates on 30-year mortgages sank this week to a one-month low, while rates on most other mortgages also fell, good news to prospective home buyers.Recall that to get to that 11-month high of 6.75% the 10-YR yield had to pop to 5.3%. We are not that high but much higher than where bond yields were on Monday. Here is a chart showing you the past 5 days.Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.63 percent. That was down from last week's 6.67 percent rate and was the lowest since early June, when rates stood at 6.53 percent.
The moderation is welcome for people in the market to buy a home. In mid-June, rates on 30-year mortgages climbed to 6.74 percent, an 11-month high.
