Thursday and Friday weren't great days for the mortgage market last week. Rates jumped sharply on Thursday and then drifted just a bit higher on Friday. By the end of the week, the average lender was yet again quoting the highest rates since 2009 with the most prevalently-quoted conventional 30yr fixed rates in the 5.5% range.
One business day later, and lenders are closer to territory from the first 3 days of last week. This is roughly an eighth of a percentage point lower than Friday's rates fore most lenders (i.e. 5.375% instead of 5.5%). As always, these rates may not apply to every scenario and the best way to use this data is for the purpose of tracking day-over-day changes.
But why are we seeing improvements in the first place? First off, volatility is elevated, and it has been for quite some time. Every time the rate market hits a new long term high, odds increase that we'll see some attempt at a counterattack in subsequent days. So far, those corrections haven't materialized into broader stability, but they've nonetheless helped break up what would otherwise be a steady stream of bad news.
In today's case China's covid lockdowns caused a drop in global markets overnight as well as oil prices. The latter is a key input for inflation, which in turn, is a key input for interest rates.