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Mortgage rates barely move as bond trading stays steady

Bond markets were steady to slightly weaker late in the day, which could translate into higher average rates for many lenders if there is no improvement by tomorrow morning.

Reported · Written up by our desk · Mortgages

Mortgage rates were largely unchanged on Thursday, with lenders seeing little need to adjust pricing after bond markets, which dictate mortgage rates, were steady to slightly weaker. Mortgage News Daily said the “weaker” move was associated with higher rates, but it came late and was too small for most lenders to change rates the same day.

Unlike the bond market, which can move every millisecond, mortgage lenders typically adjust rates only 1 to 3 times per day, often just once daily unless market volatility is high enough. Mortgage News Daily added that the day’s volatility did not clear the threshold that would prompt additional lender rate hikes.

Looking ahead, lenders are entering Friday at a disadvantage, meaning that if bonds do not improve between now and tomorrow morning, the average lender will likely offer higher mortgage rates. The outlet also pointed to additional potential volatility because Federal Reserve Chair Warsh is scheduled to speak around the same time mortgage rates are expected to be released.

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