Mortgage Rates Still in Narrow Range

Mortgage rates were generally unchanged today, compared to Friday afternoon's latest levels, as the bond and mortgage markets held well today. I was a bit worried, as well as disappointed, as we continue to float.  The market turned around after my morning report to show again some signs of life. The stock market continued to improve although generally quiet today.

The only data today was June consumer credit reported up $12.4%, as revolving credit posted another sizable increase.  This component, which is where credit card debt is tracked, has been on the rise this year raising the question whether financial firms are beginning to lend to less qualified borrowers.

North Korea rattling global geo-political concerns threatening the US with a missile attack – not really as that was not specifically stated - but that was the implication. That fear helps hold US treasuries. The dollar decline has also been a driver for equities and still saw more selling today.

Tomorrow the only data is the June JOLTS job openings and is expected to decline a little from May to 5.600 million from 5.666 million. Some pay it attention, but I do not feel that many will give much credence to it unless there is a large miss. After this report, we then will see the Treasury begin the quarterly refunding with $24B of 3yr notes at Noon.  The 10yr note auction on Wednesday will be the key to measure demand at the long end of the curve.

In summary, the overall range has been exceptionally narrow, and most clients are not likely to have seen any changes to their quoted interest rate in more than a week.  Instead, changes would be seen in the upfront costs, which allow for smaller fine-tuning adjustments to overall financing costs. The 10yr has yet to break 2.22% as this narrow range has been the norm.  Best to weigh where you are at and act accordingly.