Home loan rates struck 7-month highs last Friday, however recovered relatively well on the very first two days of today week. The past 2 days have been a bit rough, regrettably. Over that time, the average top-tier 30yr fixed rate increased 0.14% to 6.43%– just a bit higher than last Friday’s 6.41%.
Whereas mortgage rate volatility on lots of recent days have been a function of oil price volatility, the past 2 days have actually had more to do with the market’s reaction to reserve bank policy interactions. The other day, that involved the Federal Reserve’s post-announcement press conference. Today is was the European Reserve Bank (ECB).
While it might not be the very first motivation most people consider when it concerns interest rates, foreign central banks can trigger volatility around the world and today was one of those days. Regrettably, it was hostile volatility– specifically previously in the early morning.
Without any big-ticket data or central bank occasions on tap for tomorrow, geopolitical risk stands a much better possibility to go back to the motorist’s seat for rate volatility.