From Matthew Graham at Mortgage News Daily: Rates Stuck in The Middle
Rates are on hold until the next chapter is written in the complex saga of covid versus the market. This isn’t to say rates perfectly flat–simply that the prevailing momentum has been sideways for the past few weeks.
Since mortgage rates only change once or twice a day, we can use 10yr Treasury yields to see finer detail. This entire week took place in the fairly narrow range of 1.29 to 1.21, and it ended with yields precisely in the middle at 1.25%.
What does all this mean in plain English? Rates are low–much lower than most anyone expected at this point in the year. The key reason is “delta” and Fed’s patient approach to changing rate-friendly policies. The lingering concerns about the nature of the post-covid economy also make the list. [30 year fixed 2.93%]
This is a graph from Mortgage News Daily (MND) showing 30 year fixed rates from three sources (MND, MBA, Freddie Mac).