Volatile Day for Mortgage Rates. Consumer Borrowing Costs Higher
ByPosted To: Mortgage Rate Watch
Mortgage rates opened just above record lows yesterday. Many lenders were seen offering mortgage rates below the 4.25% threshold. However as the day progressed, mortgage-backed securities (MBS) prices were pressured lower and lenders had to reprice for the worse, which pushed consumer closing costs higher by about 0.25% (of the loan amount) on the day. The economic data calendar was empty yesterday but we received several reports today. First out was the final revision to second quarter Gross Domestic Product. GDP is the broadest measure of total economic activity. It reports on the output of every economic sector. It’s basically our economic report card. A rapidly growing economy can lead to price inflation, one of the main enemies of low rates. The bond market prefers stable growth while…(read more)