Rates Plummet to 3 Year Lows, But There Are Caveats
Mortgage News Daily••business
Key Points:
- The mortgage market saw unexpected volatility this week, primarily driven by a surprise $200 billion GSE mortgage-backed securities (MBS) buying announcement on Thursday afternoon, overshadowing Friday's jobs report.
- The surge in MBS prices led to lower mortgage rates, with the average lender offering the best rate sheet since February 2, 2023, marking the lowest rates since September 2022.
- Despite the initial improvement, significant volatility persisted throughout the day, with some lenders already increasing rates slightly, suggesting that rates may fluctuate before stabilizing.
- The market showed little reaction to the jobs report, focusing instead on the implications of the GSE MBS purchase, and further clarity on the buying plan is needed to determine the long-term impact
