Two days ago, mortgage rates began the day at 7.04% before mid-day improvements brought the average back down to 6.99%.  Today started out in a similar vein with the average lender at 7.05%, but the mid-day movement only made things worse. In terms of catalyst events, the bond market (and stock market, for that matter) swooned after a scheduled auction of 20yr Treasury bonds. The auction results were weaker than expected, signaling lower-than-expected demand. When demand is lower for Treasuries, it puts upward pressure on bond yields (aka "rates"). Notably, the 20yr auction results were hitting at the same time that some updates were coming out regarding the budget debate in congress.  In general, the bond market has not been enthusiastic about how that process has evolved. Bonds were hoping for a tighter leash on spending because lower spending implies lower bond issuance--something that would help rates move lower, all other things being equal. At this point, all potential iterations of the spending bill involve more spending than bonds wanted. The 20yr auction isn't all that important in the bigger picture, but it was latched onto as evidence of bigger underlying structural concerns. All that to say: bonds were weak in the morning and even weaker in the afternoon.  When bonds move enough during the day, mortgage lenders can adjust their rates for the day.  Most lenders did so. By the end of the day, this brought the average up to 7.08%--the highest closing level in just over 3 months. 

May 21, 2025 Download our Mobile App: Download our Mobile App: 30 Yr. Fixed 6.15% -0.02%   6.01% 7.13% 15 Yr. Fixed 5.72% -0.03%   5.55% 6.5% 30 Yr. Jumbo 6.33% -0.02%   6.1% 7.45% Compare Mortgage Rates from Local Lenders for May 21, 2025 Mortgage Rates Move Up to 3 Month Highs Wed, May 21, 2025 3:43PM Two days ago, mortgage rates began the day at 7.04% before mid-day improvements brought the average back down to 6.99%.  Today started out in a similar vein with the average lender at 7.05%, but the mid-day movement only made things worse. In terms of catalyst events, the bond market (and stock market, for that matter) swooned after a scheduled auction of 20yr Treasury bonds. The auction results were weaker than expected, signaling lower-than-expected demand. When demand is lower for Treasuries, it puts upward pressure on bond yields (aka "rates"). Notably, the 20yr auction results were... (read more) Mortgage News Daily Rate Change Points 30 Yr. Fixed 6.15% -0.02 0.00 15 Yr. Fixed 5.72% -0.03 0.00 30 Yr. FHA 5.75% -0.05 0.00 30 Yr. Jumbo 6.33% -0.02 0.00 7/6 SOFR ARM 5.56% -0.03 0.00 30 Yr. VA 5.77% -0.04 0.00 Updates Daily - Last Update: 2/6 Freddie Mac Rate Change Points 30 Yr. Fixed 6.11% +0.01 0.00 15 Yr. Fixed 5.50% +0.01 0.00 Updates Weekly - Last Update: 2/5 Mortgage Bankers Assoc. 30 Yr. Fixed 6.24% +0.08 0.55 15 Yr. Fixed 5.64% +0.09 0.61 30 Yr. Jumbo 6.34% -0.05 0.40 Updates Weekly - Last Update: 1/28 UMBS 30YR 5.0 100.05 +0.01   95.71 100.50 UMBS 30YR 5.5 101.49 +0.04   98.11 101.64 10 YR Treasury 4.213 +0.033   3.932 4.608 Nothing For Bonds to Trade But Fiscal Disillusionment Wed, May 21, 2025 10:50AM We're now into the 3rd day of a week that's conspicuously lacking in relevant econ data. In addition, the looming holiday weekend hinders participation and increases potential volatility. That means an extra level of impact for whatever bonds can find to move the needle. So far, all they've been finding is a feeling of disillusionment with the fiscal ou... (read more) MBS Price Change UMBS 4.5 98.06 +0.03 UMBS 5.0 100.05 +0.01 UMBS 5.5 101.49 +0.04 GNMA 4.5 97.84 +0.10 GNMA 5.0 100.18 +0.11 GNMA 5.5 101.22 -0.02 Pricing as of: 2/7 7:12PM EST US Treasury Yield Change 2 YR Treasury 3.496 +0.044 5 YR Treasury 3.753 +0.036 7 YR Treasury 3.965 +0.026 10 YR Treasury 4.213 +0.033 30 YR Treasury 4.851 +0.006 Pricing as of: 2/7 7:12PM EST Other News Non-QM, Post-Closing, POS, Warehouse Products; Vendor Marketplace; FHA, VA, and Ginnie news Wed, May 21, 2025 11:50AM As nearly a thousand capital markets staff, managers, and vendors head home from Manhattan, united in trying to help borrowers, in a reflection of the times, it’s interesting how divisive the times are given the phone call this week between Vladimir Putin and Donald Trump. Fox News noted, “Trump Confident Putin Wants Peace” versus nearly every other publicat... (read more) Latest Video Supply of homes for sale in U.S. surge to highest level since 2020 Toll Brothers saw 'softer demand' in Q2, to reduce spec. home starts Deputy Treasury Secretary Faulkender: We'll get the budget bill passed out ... Republicans will likely succeed in passing budget bill, says Wolfe Research... Around the Web CNBC A fundamental regime shift could be underway as investors rethink U.S. assets, ECB says CNBC Mortgage demand drops after interest rates jump to the highest level since February CNBC How lumber duties could worsen home affordability in the U.S. Calculated Risk Blog ICE: "Annual home price growth nationally slowed to 1.6% in May" Reverse Engineering Finance The looming impact of student loan repayment on the FHA portfolio? Calculated Risk Blog AIA: "Billings continue to decline at architecture firms" Calculated Risk Blog In Q1 2025, 19% of Units Started Built-for-Rent were Single Family Eye on Housing Single-Family Home Size Trending Higher Eye on Housing Gains for Multifamily Missing Middle over Last Year Calculated Risk Blog Update: Lumber Prices Up 13% YoY CNBC Treasury yields tick higher as investors monitor budget bill discussions Federal Reserve FEDS Paper: Collateral Reuse and Financial Stability Eye on Housing Slight Gains for Townhouse Construction

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