Mortgage rates fell only slightly today, but with yesterday already near 4-month lows, today’s moderate improvement makes it official–at least in terms of closing cost. The actual interest rate that the best qualified buyers are likely to be quoted isn’t any lower than the previous 4.25% (best-execution). The gains would instead be seen in the form of slightly lower closing costs, or slightly higher lender credit depending on the scenario.
Very little happened today to inspire market movement. There was no significant economic data and no surprising clues about Fed policy. Before, during, and after the shutdown, we’ve maintained that bond markets are most intently focused on the official Employment Situation Report.
For the past 3 weeks the focus was on the absence of the report, which caused uncertainty. With the exception of the last few days before the debt ceiling deadline, this led to a narrow interest rate environment. With the shutdown over, the jobs report will now be released this coming Tuesday. With it comes our first major cue for interest rate momentum since September 18th.