Mortgage Rates Ends Where 2017 Started

Mortgage rates ended 2017 about the same where they started.  Even though there were some periods this year that seemed like they were going to retreat, there was always that push that drove them up again, even with the long periods of narrow ranges.  Last week with the large spike that had not been seen in a while, some of that has already been erased but now that ceiling is now the floor on which we stand.

This turn of events is not unusual as there is not the full complement of traders on the floor, and the select few try to turn the markets in their favor causing some high volatility during the last few weeks in December. This Imbalances between buyers and sellers always cause some movement, but illiquidity means that rates move much more than they otherwise would.

Thankfully, this week's illiquidity worked in our favor, and rates returned to the dominant range of the third quarter of 2017.  We could be waiting for the 2nd full week of January before we get a clear sense of how traders are approaching the bond market in 2018.

Till then, have a Happy New Year and Be Safe!