Mortgage Rates Modestly Lower to Start New Week

Mortgage rates were lower today for the average lender, but just how low remains a matter of great debate.  To be fair, there's no active debate raging behind the scenes.  Rather, there are a few weeks' worth of news headlines claiming "all-time low mortgage rates," and then there is the objective truth (which is a bit different from those news headlines).

We've talked about the discrepancy quite a bit recently (here is the most recent and most thorough discussion).  It has to do with 2 shortcomings of popular rate surveys: stale/limited data and a "purchase-only" focus. 

Stale data can cause problems, but it shouldn't result in 2 consecutive weeks of erroneous conclusions about all-time low rates.  One caveat here is that the recently noted all-time lows aren't much lower than the previous instances in early August and early September.   The "purchase-only" focus is causing an even bigger issue currently, because purchase rates are somewhat to significantly lower than refi rates, depending on the lender.

 

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2020-10-26T13:47:00-06:00October 26th, 2020|

Mortgage rates were lower today for the average lender, but just how low remains a matter of great debate.  To be fair, there's no active debate raging behind the scenes.  Rather, there are a few weeks' worth of news headlines claiming "all-time low mortgage rates," and then there is the objective truth (which is a bit different from those news headlines).

We've talked about the discrepancy quite a bit recently (here is the most recent and most thorough discussion).  It has to do with 2 shortcomings of popular rate surveys: stale/limited data and a "purchase-only" focus. 

Stale data can cause problems, but it shouldn't result in 2 consecutive weeks of erroneous conclusions about all-time low rates.  One caveat here is that the recently noted all-time lows aren't much lower than the previous instances in early August and early September.   The "purchase-only" focus is causing an even bigger issue currently, because purchase rates are somewhat to significantly lower than refi rates, depending on the lender.

 

...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

2020-10-26T13:47:00-06:00October 26th, 2020|