Mortgage Rates Stay Near Recent Lows as Busy Week Begins

Mortgage rates didn't move today, despite a fair amount of underlying market volatility.  Rates are able to weather the sorts of storms you hear about in the stock market in part due to the diminishing returns of stock market drama on the bond market.  Along those same lines, the bonds that underlie mortgages specifically don't tend to react to stocks as much as mainstream bonds like US Treasuries. 

Holding steady today means that rates remain at their lowest levels in just over 2 weeks.  That sounds like a good thing, but the catch is that we really haven't moved too far from recent highs during that time, and those are the highest highs in more than 7 years.

The rest of the week keeps the volatility potential high.  There are several important economic reports, culminating in Friday's big jobs report.  Earnings season remains in full swing with bigger name companies reporting toward the end of the week.  Beyond that, the end and beginning of the month is typically a more active time for bond traders.  All of that adds up to the risk that we could see bigger swings in rates than we have seen in recent weeks.

This Daily Mortgage Rate Update is provided in partnership with Mortgage News Daily.