30 Year Fixed
3.00%    -0.01
15 Year Fixed
2.56%    -0.01
10YR Treasury
0.77%    -0.0334
FNMA 30YR 3.5
105.58    +0.06
FNMA 15YR 2.5
104.70    -0.02
Mortgage Rates Mostly Flat Despite Stronger Bond Market
October 27, 2020

Mortgage rates are mostly determined by the trading levels of mortgage-backed bonds on the open market.  When those bonds improve, mortgage rates move lower, all other things being equal.  For a variety of reasons, that typical relationship has been hit and miss on any given day since the pandemic began.  Today is a milder example.  Bonds improved, but the average mortgage lender is offering rates that are nearly unchanged versus yesterday.

The trade-off is that mortgage rates stayed much lower than the bond market suggested for most of the rest of the month of October.  In other words, mortgage rates have been hesitant to move higher OR lower relative to the bond market's suggestion.

All that having been said, broad trends in the bond market are still important.  The more bonds move in the same direction, the more mortgage rates will eventually have to comply.  At the moment, there's a potentially positive shift in the works.  Bonds have had a pretty bad October, but this week has been much stronger by comparison--at least if the first 2 days are any indication.  That trend would need to continue if we're to see any meaningful improvement in rates.

30 Year Fixed Rate Mortgage
15 Year Fixed Rate Mortgage
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Today's Rates
Best Execution
Rate Change
30 Yr FRM 3.00% -0.01
15 Yr FRM 2.56% -0.01
FHA 30 Year Fixed 2.42% +0.00
Jumbo 30 Year Fixed 3.36% -0.02
5/1 Yr ARM 2.72% -0.07
Average Mortgage Rates
Rate Points Change
FHFA *
15 Yr. Fixed 0.00% 0.00 +0.00
30 Yr. Fixed 0.00% 0.00 +0.00
MBA **
30 Yr. Fixed 3.01% 0.37 -0.04
15 Yr. Fixed 2.59% 0.36 -0.06
30 Yr. Jumbo 3.31% 0.30 -0.02
30 Yr. FHA 3.12% 0.32 -0.03
5/1 ARM 2.80% 0.34 -0.15
Freddie Mac **
30 Yr. Fixed 2.80% 0.60 -0.01
15 Yr. Fixed 2.33% 0.60 -0.02
1 Yr. ARM 2.68% 0.20 +0.01
5/1 Yr. ARM 2.87% 0.30 -0.03
* FHFA averages are updated monthly.
** Mortgage Bankers Association (each Wednesday) and Freddie Mac (each Thursday) averages are updated weekly.
Secondary Markets
MBS
Price Change
30YR UMBS 3.0 104.48 +0.08
30YR UMBS 3.5 105.58 +0.06
30YR GNMA 3.0 104.09 +0.06
30YR GNMA 3.5 104.53 +0.03
15YR UMBS 3.0 104.70 -0.02
15YR UMBS 2.5 104.06 +0.09
Treasuries
Yield Change
2 YR 0.1474% -0.0040
5 YR 0.3300% -0.0209
10 YR 0.7693% -0.0334
30 YR 1.5537% -0.0379
Prices as of: 10/27/2020 4:53PM EST
MBS and Treasury data provided by Thomson Reuters.
Mortgage News Daily and MBS Live! are exclusive re-distributors of Real Time Thomson Reuters Mortgage Information.
Secondary Marketing Managers:
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About This Report
Mortgage News Daily is a trusted source of mortgage rate market data and analysis, with over 1 million readers each month. Unlike many rate surveys, our survey is conducted on a daily basis and is designed to bring you the most current and accurate rate data available.  We use a proprietary formula to calculate averages based on best-execution rates from top lender's rate sheets, also taking into account feedback from hundreds of mortgage market professionals around the country.