October 2018

Mortgage Rates Keep Edging Higher as Stocks Recover

October 31, 2018

Mortgage rates were higher by a fairly small margin once again today.  Interest rates in general (which are determined by the bond market) have been taking most of their cues from recent stock market volatility.  That’s not always the way it works, but it’s the way things have been in the wake of the big stock losses seen on several occasions in recent weeks.  Now, as stocks begin to stabilize and move higher, rates have felt some pressure to do the same.

Unfortunately, in relative terms, the recent drop in rates hasn’t even come close to matching the move in stocks.  Simply put, the bond market is reluctant to improve too much without more substantial justification.  Such justification could take the shape of even bigger stock losses, or more realistically, weaker economic data.  To that end, the last two days of the week bring the most important economic reports with Friday’s jobs report being the biggest ticket.

Best Execution
Rate Change
30 Yr FRM 4.97% +0.01
15 Yr FRM 4.46% +0.01
FHA 30 Year Fixed 4.45% +0.01
Jumbo 30 Year Fixed 4.44% +0.04