The stock market took a hit yesterday with the Dow setting a record for most points dropped in a single day. With the flight to safety from investors, the bond market rallied, pushing the yield lower on the 10-year Treasury note.
Mortgage rates, which are closely tied to the 10-year yield, similarly moved lower. Read on for more details.
Where are mortgage rates going?
Treasury yields move back up today
Unless you live under the proverbial rock, you know that the stock market got slammed yesterday, with the Dow falling by more points (1,175) than any day in its existence.
Click here to get today’s latest mortgage rates (Jul. 22, 2023).
Naturally, there has been a lot of commentary on the matter (with the two leading theories being increasing inflation and a faster tightening schedule from the Fed) but the reality of the situation is that nobody really knows exactly why it happened.
Short term corrections aren’t anything out of the ordinary, so while they do create quite a fuss on Wall Street, there’s no need to go into a full panic. The fact that no one truly knows everything about what’s happening is made clear when you look at all of the various predictions for what will happen next.
There are basically two camps out there: those that think the decline will continue, and those who don’t. Right now, it’s kind of a mix, with bond yields rising and mixed results in the stock market.
The yield on the 10-year Treasury note, which is the best market indicator of where mortgage rates are going, is up a little over four basis points since the start of the day, putting it at 2.75%. That’s still down from yesterday’s peak of 2.88%.
Mortgage rates typically move in the same direction as the 10-year yield and similarly moved lower yesterday only to retreat back up slightly today.
Where we go from here is really anyone’s guess. There’s not a lot of economic data out the rest of the week to sway investors in one direction or the other.
Rate/Float Recommendation
Lock now while rates are down on the week
Mortgage rates are down on the week, which is great news for borrowers. If you’re thinking of purchasing or refinancing, now is the perfect time to lock in a rate. The long-term projection is for mortgage rates to rise so taking action sooner rather than later is likely to get you the better deal.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
International Trade
The nation’s trade deficit widened to $53.1 billion in December. That’s more than the $51.9 billion that analysts had predicted.
Fedspeak
- St. Louis Fed President James Bullard at 8:50am
JOLTS
The Labor Department’s latest data is showing 5.811 million job openings in December.
Get the GreenLight and close in 21 days*
Notable events this week:
Monday:
- PMI Services Index
- ISM Non-Mfg Index
Tuesday:
- International Trade
- Fedspeak
- JOLTS
Wednesday:
- Fedspeak
- EIA Petroleum Status Report
- 10-Yr Note Auction
Thursday:
- Fedspeak
- Jobless Claims
Friday:
*Terms and conditions apply.
Source: totalmortgage.com