Mortgage rates fell again today, but at a gentler pace than yesterday, bringing them to new 4-month lows. With no meaningful economic data to influence rates, the positive momentum today was more of an epilogue to yesterday’s main storyline. The Conforming 30yr Fixed rate (best-execution) itself, remained at 4.125%, with the improvement coming in the form of lower closing costs or higher lender credit, depending on the scenario.
Interest rates have clearly experienced an adjustment courtesy of jobs report, and the magnitude of the move is in line with the magnitude of the “miss” (in that we saw a good sized improvement in rates for a good-sized discrepancy between the actual jobs numbers and expectations). From here, the remaining economic data will offer fine-tuning adjustments, either helping the continue the trend lower in rates, or suggesting a broader leveling-off process before the next big jobs report (which is only two weeks away due to shutdown-related rescheduling).