Real Estate
Home›Real Estate›Mortgages›Mortgage rates held steady as bond yields and oil moved
Mortgage rates held steady as bond yields and oil moved
Mortgage News Daily said the usual link between lower bond yields and lower mortgage rates was weaker on Friday, as lenders priced to intraday moves.
Mortgage rates were roughly unchanged on Friday, despite choppier trading in the bond market and higher oil prices earlier in the day, according to Mortgage News Daily. The outlet attributed much of the volatility to bond market movements tied to heavy forex trading connected to US and Japan efforts to support the Japanese currency, noting that this is not typically a major driver of mortgage rates. It also said oil prices rose at one point, and bond yields tended to track oil prices closely during the Iran-war period.
As the new week began, de-escalation in the Iran conflict pushed oil prices lower, with bond yields moving in relative lock-step. Mortgage News Daily added that while the common pattern is lower bond yields leading to lower mortgage rates, Friday was one of the occasional days where the correlation was less direct.
It said the rates a given borrower would see depended on whether lenders raised rates mid-day on Friday. The average lender was still close to Friday morning levels, while lenders that increased rates later on Friday were generally a bit lower on Monday.