December 29, 2017
Mortgage rates were unchanged again today, keeping them at the same stronger levels achieved on Wednesday afternoon. Wednesday’s gains were much-needed as they went a long way toward erasing the damage from a quick spike that took rates to the highest levels in months last week.
The caveat to the back-to-back weeks of volatility is that this is the end of December. Mortgage rates are driven primarily by trading in bond markets, and trading in bond markets becomes exceptionally sparse this time of year. In market speak, the word is “illiquid.” Imbalances between buyers and sellers always cause some movement, but illiquidity means that rates move much more than they otherwise would.
Thankfully, this week’s illiquidity worked in our favor, and rates returned to the dominant range of the third quarter of 2017. We could be waiting for the 2nd full week of January before we get a clear sense of how traders are approaching the bond market in 2018.
Today’s Most Prevalent Rates
|30 Yr FRM||4.04%||+0.00|
|15 Yr FRM||3.37%||+0.00|
|FHA 30 Year Fixed||3.75%||+0.00|
|Jumbo 30 Year Fixed||4.19%||+0.00|