Mortgage Rates on Hold
The bond markets were closed on Monday in observance of Columbus Day, leaving U.S. Treasury yields at Friday's levels. The stability in yields, which move in the opposite direction of prices, allowed mortgage lenders to hold rates steady.
Inflation erodes the value of fixed-rate assets, such as bonds. If these concerns carry through into Tuesday, Treasuries prices could come under intense pressure.
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 5.727 percent from 5.747 percent at Friday's close.
The 15-year Conventional Fixed-Rate Mortgage was at 5.349 percent from 5.343 percent at Friday's close.
Coming Up:
The only report of consequence slated for Tuesday is the minutes for the Sept. 20 meeting of the Federal Open Market Committee, which will be combed for further insight into the Fed's thoughts about inflation. Last week, however, it became crystal clear via a number of speeches by Fed officials, that the Committee has no intention of easing its rate-hike policy due to the threat of inflation. The only other economic news comes in the form of two weekly surveys on national retail sales. These data have little impact.
Treasury yields remained unchanged due to the holiday, and mortgage rates held, too. But if the inflationary fears that wracked Wall Street on Monday creep into the bond markets on Tuesday, Treasuries will sell and yields will move higher. This could cause an up tick in some mortgage rates.
Inflation erodes the value of fixed-rate assets, such as bonds. If these concerns carry through into Tuesday, Treasuries prices could come under intense pressure.
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 5.727 percent from 5.747 percent at Friday's close.
The 15-year Conventional Fixed-Rate Mortgage was at 5.349 percent from 5.343 percent at Friday's close.
Coming Up:
The only report of consequence slated for Tuesday is the minutes for the Sept. 20 meeting of the Federal Open Market Committee, which will be combed for further insight into the Fed's thoughts about inflation. Last week, however, it became crystal clear via a number of speeches by Fed officials, that the Committee has no intention of easing its rate-hike policy due to the threat of inflation. The only other economic news comes in the form of two weekly surveys on national retail sales. These data have little impact.
Treasury yields remained unchanged due to the holiday, and mortgage rates held, too. But if the inflationary fears that wracked Wall Street on Monday creep into the bond markets on Tuesday, Treasuries will sell and yields will move higher. This could cause an up tick in some mortgage rates.
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