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Another Day in an Incredibly Narrow Range For Mortgage Rates

The bond market is waiting for bigger news on inflation and the economy, and traders aren’t pretending otherwise.  Why does that matter?  Traders determine the prices/yields of bonds which, in turn, determine day to day changes in mortgage rates.  At the moment, a debate is calmly raging among economists and pundits regarding the fate of inflation and economic growth.  The lower those things are, the lower rates will be.  The problem is that a majority of economists and pundits thought the Fed’s aggressive monetary tightening efforts would have already precipitated more progress on those fronts.  Instead, the economy has been more resilient than expected and inflation more persistent.   Inflation proponents continue crying wolf, and while the wolf may be real, half of the village is paying attention while the other half go about business as usual.  Once most of the village is on the same page, or even heading in that direction, rates should be making bigger moves. As for today, it was just another in the seemingly endless sea of summertime weekdays with little excitement in the bond market.  The average lender is very close to the same levels offered yesterday.
Source: mortgagenewsdaily.comNew feed

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