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Mortgage rates edge higher amid bond volatility and corporate supply
Multiple lenders adjusted rates mid-day Thursday, with bond prices pressured by a large Alphabet corporate bond offering and heightened sensitivity to war and oil-driven inflation expectations.
Mortgage rates rose modestly on Thursday as lenders made mid-day adjustments in response to volatility in the bond market, according to Mortgage News Daily. The outlet said bond moves remain closely tied to war-related developments and shifts in oil prices, which can influence inflation expectations.
Mortgage News Daily also pointed to supply and demand in credit markets after Alphabet announced a large corporate bond offering. It noted that increased corporate issuance can compete for investor demand, indirectly lowering demand for the bonds that underpin mortgage rates, which tends to push rates up when bond prices fall.
The report characterized Thursday’s increase as small in the bigger picture, adding that rates had been the best in more than two weeks just the prior day. It also flagged potential volatility ahead of the monthly jobs report, plus ongoing risk from war-related headlines that could move rates higher or lower.
Overall, the outlook highlighted uncertainty for Friday in particular, with lenders and borrowers likely to feel the effects of incoming economic data and shifting bond-market sentiment.