Mortgage Rates Up

10/27

Mortgage rates continued to climb throughout the day in response to the three-day sell-off in U.S. Treasury securities that began on Monday and continued through Wednesday. On Thursday, however, Treasuries caught a break as buyers stepped into the bond pits and reversed the downward trend. A weaker-than-expected report on Durable Goods Orders, reassuring words from bond king Bill Gross and news that the SEC had subpoenaed GM regarding its accounting practices boosted Treasuries and sent yields, which move in the opposite direction of prices, down. The decline in yields, which mortgage lenders use as a guide to set rates, came too little and too late. The three-day rise in yields forced lenders to hike mortgage rates, which are now at months-high levels.

At 4 p.m. EDT, AVERAGE mortgage rates (zero discount points) based on rates collected nationwide were:

The 30-year Conventional Fixed-Rate Mortgage was at 5.975 percent from 5.941 percent at Wednesday's close.

The 15-year Conventional Fixed-Rate Mortgage was at 5.547 percent from 5.52 percent at Wednesday's close.

If there are signs of inflation within these reports, selling will once again take over in the bond markets. But if readings are benign, Thursday's buying trend could continue. Although yields edged down during today's session, it is unlikely that the decline was strong enough to impact mortgage rates.

Mortgage Rates on the Rise

10/26/2005

Another strong day of selling in U.S. Treasury securities on Wednesday sent prices plunging and yields, which move in the opposite direction of prices, soaring. As a result, the rate on the 30-year fixed closed in on 6 percent, its highest level since June 2004, according to records kept by Interest.com. While rates hit a new high for the year, the reasons for another sell-off were old. Traders are focused on the threat of inflation and the rate hikes that will be enacted to keep it at bay.

The only news released on Wednesday came from the Mortgage Bankers Association, and it had no effect on the markets. The report, however, showed that higher mortgage rates had a negative effect on mortgage applications. For the week ended Oct. 21, applications to purchase fell 7.4 percent, while refis dropped 8.5 percent, accounting for 42.5 percent of all mortgage applications.

At 4 p.m. EDT, AVERAGE mortgage rates (zero discount points) based on rates collected nationwide were:

The 30-year Conventional Fixed-Rate Mortgage was at 5.941 percent from 5.865 percent at Tuesday's close.

The 15-year Conventional Fixed-Rate Mortgage was at 5.52 percent from 5.454 percent at Tuesday's close.

The huge rise in yields this week will continue to put pressure on mortgage lenders. It is likely that rates will keep moving up as long as yields do.

Treasuries Down, Mortgage Rates Up - Daily Mortgage

10/25/2005

Two straight days of increases in yields have put upward pressure on mortgage rates - fixed as well as adjustable.

At 4 p.m. EDT, AVERAGE mortgage rates (zero discount points) based on rates collected nationwide were:

The 30-year Conventional Fixed-Rate Mortgage was at 5.865 percent from 5.853 percent at Monday's close.

The 15-year Conventional Fixed-Rate Mortgage was at 5.454 percent from 5.444 percent at Monday's close.

The huge increase in bond yields over the past two sessions is already being felt in the housing market. Mortgage rates are beginning to edge up and will likely move higher to keep pace with yields.

Mortgage Rates Remain High

10/21/2005

U.S. Treasury securities ended their first winning week in a month on Friday, sending yields, which move in the opposite direction of prices, down. Mortgage rates, which are guided by yields, however, dipped early but closed right near Thursday's levels.

At 4 p.m. EDT, AVERAGE mortgage rates (zero discount points) based on rates collected nationwide were:

The 30-year Conventional Fixed-Rate Mortgage was at 5.866 percent from 5.858 percent at Thursday's close.

The 15-year Conventional Fixed-Rate Mortgage was at 5.454 percent from 5.457 percent at Thursday's close.

The drop in Treasury yields on Friday could influence mortgage lenders to edge some rates down over the weekend and into Monday.