From Matthew Graham at Mortgage News Daily: Mortgage Rates Start Higher, But Improve in The Afternoon
By abstaining on Friday, the average lender was forced to adjust today’s rates slightly higher to account for the bond market weakness. In other words, this morning’s rates were higher than Friday morning’s.
As the day progressed, mortgage bonds improved enough for a friendly mid-day reprice. A majority of lenders pulled the trigger, thus helping rates close the gap with Friday’s rates. Simply put, rates started the day moderately higher versus Friday morning, but are now only marginally higher (assuming the lender in question offered a mid-day price improvement). … [30 year fixed 2.94%]
• At 10:00 AM ET, New Home Sales for July from the Census Bureau. The consensus is for 690 thousand SAAR, up from 676 thousand in June.
• Also at 10:00 AM, Richmond Fed Survey of Manufacturing Activity for August.