January 16, 2015
Mortgage rates continued moving aggressively lower this week, largely because broader bond markets moved even more aggressively lower. In fact, in that sense, mortgages had a hard time keeping up, and that ultimately helped them hold their ground on Friday when broader markets finally underwent a correction.
Friday aside, the net effect is what’s important here. Rates are back in the range that prevailed during the “golden era” from mid 2012 to mid 2013 when the most prevalently quoted conforming 30yr rates stayed between 3.125 and 3.625% for top-tier borrowers.
2015 continues to live up to its promise of volatility, and next week could be the wildest yet. Unfortunately, volatility goes both ways. The long term trend has certainly been positive for fans of low rates. And while there’s no reason that can’t continue, there’s also never a guarantee.
You can read the rest of my weekly mortgage news update here – CLICK HERE FOR THE WEEKLY UPDATE