30 Year Fixed
3.64%    -0.10
15 Year Fixed
3.32%    -0.05
10YR Treasury
1.75%    +0.0275
FNMA 30YR 3.5
102.52    -0.20
FNMA 15YR 2.5
102.25    -0.11
Mortgage Rates Surge to Lowest Levels Since November 2016
August 9, 2019
Market Summary

Mortgage rates thundered precipitously lower this week as the market remained in the throes of a panicked reaction surrounding to another flare up in trade tensions between the US and China.  This began last Thursday but swung into full gear earlier this week.

Volatility comes with a cost for mortgage lenders though, and many of them were forced to raise rates a bit even though bond markets didn't always agree with the move.  Things settled down by the end of the week with rates right in line with their lowest levels since November 2016.

-Matt Graham, MortgageNewsDaily.com

30 Year Fixed Rate Mortgage
Week in Review
Rates shown below are based on the 30 Year Fixed Rate Mortgage
Beginning Average: 3.70%
Ending Average: 3.64%
Weekly Change: -0.06%
Yearly Change: -1.00%
Friday, August 2, 2019  :   3.70% (-0.07%)

Mortgage rates fell again on Friday as lenders finally saw recent bond market gains stabilize enough to act on.  In other words, lenders don't always keep their mortgage rate offerings moving in lock-step with the underlying bond market (which dictates rates over time).  This helps protect them from potential volatility, which ultimately allows them to keep rates lower than they otherwise would be (volatility is costly in the mortgage rate world).

Monday, August 5, 2019  :   3.65% (-0.05%)

Mortgage rates were already in great shape on Friday after having fallen to the lowest levels since November 2016.  Rather than draw inspiration from the week's big ticket events (Fed announcement and jobs report), the biggest source of inspiration was a flare-up in trade tensions following Trump's announcement of new tariffs on Chinese imports.  Trade war drama flared over the weekend as China's central bank set the country's currency at the weakest levels in more than a decade.

Tuesday, August 6, 2019  :   3.61% (-0.04%)

Mortgage rates hit their lowest levels since November 2016 late last week and they've proceeded to set a new long-term low each day since then.  Today was no exception.  That's fairly surprising at first glance, considering the underlying changes in the mortgage-backed securities (MBS) that most directly affect mortgage rates.

 

Wednesday, August 7, 2019  :   3.60% (-0.01%)

Mortgage rates have had a great week.  Although rates are slightly higher today versus yesterday, they're still exceptionally close to the lowest levels since November 2016.  That's actually been the case since late last week as more than half of the improvement in underlying bond markets (which dictate rates) was in the books by Friday afternoon.   It took lenders a few days to get caught up with the market movement, but by yesterday afternoon and this morning, top tier scenarios were seeing rate quotes of 3.625% in many cases (25%+ down, perfect credit, etc).

Thursday, August 8, 2019  :   3.74% (+0.14%)

Mortgage rates were sharply higher today, with the average 30yr fixed rate quote rising by almost an eighth of a percentage point in some cases.  A move of that magnitude in one day is the sort of thing that only happens a few times a year.  Surprisingly, a multitude of headlines claim that rates are sharply LOWER this week.  What gives?!

 

Friday, August 9, 2019  :   3.64% (-0.10%)

Mortgage rates moved lower today even though the broader bond market suggested they should have remained flat or higher.  In several of this week's previous articles, we've discussed the volatility that's been wreaking havoc on the world of mortgage rate setting for lenders.  Simply put, when the moves get bigger and when the direction changes more frequently, mortgage rates take extra damage relative to Treasury yields (a risk-free benchmark for most any other rate in the US).  

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Today's Rates
Best Execution
Rate Change
30 Yr FRM 3.64% -0.10
15 Yr FRM 3.32% -0.05
FHA 30 Year Fixed 3.25% -0.13
Jumbo 30 Year Fixed 3.71% -0.08
5/1 Yr ARM 3.45% -0.05
Average Mortgage Rates
Rate Points Change
FHFA *
15 Yr. Fixed 3.79% 1.21 -0.12
30 Yr. Fixed 4.39% 1.12 -0.22
MBA **
30 Yr. Fixed 4.12% 0.38 +0.08
15 Yr. Fixed 3.48% 0.32 +0.06
30 Yr. Jumbo 4.07% 0.21 +0.04
30 Yr. FHA 4.01% 0.28 +0.04
5/1 ARM 3.58% 0.27 +0.02
Freddie Mac **
30 Yr. Fixed 3.60% 0.60 -0.15
15 Yr. Fixed 3.05% 0.50 -0.15
1 Yr. ARM 2.68% 0.20 +0.01
5/1 Yr. ARM 3.36% 0.30 -0.10
* 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 FNMA 3.0 101.50 -0.13
30YR FNMA 3.5 102.52 -0.20
30YR GNMA 3.0 102.69 -0.14
30YR GNMA 3.5 103.67 -0.17
15YR FNMA 3.0 102.25 -0.11
15YR FNMA 2.5 101.08 -0.09
Treasuries
Yield Change
2 YR 1.6567% +0.0540
5 YR 1.5841% +0.0404
10 YR 1.7464% +0.0275
30 YR 2.2644% +0.0355
Prices as of: 8/9/2019 5:02PM 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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Mortgage News Daily is a trusted source of mortgage rate market data and analysis, with over 1 million readers each month.

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