September Mortgage Market Report

The 10-year Treasury yield fell to a new 2017-low on Tuesday. In response, the 30-year mortgage rate dropped 4 basis points to 3.82 percent, reaching a new year-to-date low for the second consecutive week. However, recent releases of positive economic data could halt the downward trend of mortgage rates.

Mortgage rates hit the best levels of the year (again) early last week but ended up drifting slightly higher by Friday.  The initial motivation came from headlines concerning North Korea launching a missile that flew over Japan.  That’s the sort of news that tends to send stocks and rates quickly lower.  Both began moving in the other direction last Tuesday afternoon.

The overall movement continues to be minimal for mortgage rates.  Many borrowers wouldn’t have seen any changes in their rate quotes throughout the course of the week (apart from modest movement in the upfront costs).  The most prevalent top-tier conventional 30yr fixed rate remains 3.875% for a perfect scenario although there are lenders on either side of that rate in smaller numbers.


 

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