After completing on May 21, the average mortgage rate was good. This has been particularly true since June 6, our 30-year fixed index lowering almost 0.25% in this afternoon. Today’s earnings have contributed well with a drop of 0.07%.
Normally, we highlight the economic release calendar to help explain this kind of momentum. There were many reports this morning and several of them could be considered useful for prices. But when the rates are reduced in response to economic data, we tend to see at least a semblance of weakness on the stock market – even if it is only briefly – and that was not found.
The involvement is that the market moves largely to expect a lower trajectory for the rate of federal funds (something that would help rates and actions).
It is always good to remember that the greatest number of days in a sequence of mortgage victories, the more the chances of a rebound are high. Sometimes it only means one day moving modestly higher. Other times, the rate market reaches a short -term floor and returns to its recent range for a while. There is absolutely no way of knowing what type of rebound will be the next one, but only that it becomes a little more likely every day of victory.
Note: Our sequence of victories is currently at 5 days, and we do not tend to draw attention to these risks until we reached 8 days. Some of the longest sequences last more than 10 days.
