Incidental Weakness. Bigger Considerations on The Horizon
Without any data or compelling market movers, bonds came into the day light on inspiration. Low volume/liquidity left the door open for any determined traders to have a bigger-than-normal influence on the market. That arguably happened between 9am and 10:30am ET with both stocks and bonds losing ground simultaneously. This coincided perfectly with an uptick in Fed rate hike expectations seen via near-term Fed Funds Futures.
Market Movement Recap
08:34 AM Sideways to slightly stronger overnight. MBS up 1 tick (.03) and 10yr down half a bp at 4.697.
10:34 AM MBS down an eighth and 10yr up 2.7bps at 4.728
01:47 PM MBS down 5 ticks (.16) and 10yr up 3.9bps at 4.741
Mortgage Rates Drift Modestly Higher
For all practical purposes, Friday’s mortgage rates were unchanged versus Thursday’s, but if we’re splitting hairs, the average lender rose 0.01% to 6.77% for a top tier 30yr fixed. While many news outlets continue focusing on the mid-week annou…