A day after hitting the lowest levels in more than 2 months, mortgage rates bounced back up today. The good news is that they didn't land too far from yesterday's levels in the grand scheme of things, and are still technically closer to the bottom of their March/April range.
Part of today's reversal had to do with the fact that bonds are caught up in market movements that follow geopolitical risk. Specifically, to whatever extent some sort of military confrontation with Syria and Russia looked imminent yesterday, rates benefited because some investors were seeking safe havens in the bond market. Excess demand for bonds pushes rates lower. When Trump pushed back on that notion overnight, the safe haven trade went the other way....(read more)