After rising somewhat sharply yesterday, mortgage rates managed to find a foothold in the market session on Friday. Bonds typically face greater volatility risk when they have to digest scheduled economic data or major news headlines. Today I offered a light source for both (especially the econ data… there wasn’t any). As such, trading levels didn’t deviate far from Thursday afternoon and the average mortgage lender was able to cut costs by just a hair. The average borrower will still see the same interest rate that was quoted yesterday, but perhaps at microscopically low upfront costs. Note: Prices were close enough not to change that these initial costs may be slightly higher in some cases. Big swings are a bigger risk next week in terms of the Fed’s rate hike and press conference with Fed Chair Powell. A rate hike is seen as a 100% certainty, so it is the press conference that will capture the attention of the bond market (hence “rates”).
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