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Mortgage rates stood at just over 7% in early March. Then the failure of Silicon Valley Bank sparked a mini-banking crisis; That, when combined with some weak economic data in early April, helped push rates down almost all the way to 6%.
The passage of time without new bank failures and the appearance of some “less downbeat” data is pulling rates back in the other direction. Today’s installment looked at higher inflation figures in the UK. While this may not seem like something that would affect mortgage rates in the US, in fact a well-established trend of volatility in the European bond market is pervading the US trading day.
Bonds determine interest rates, all other things being equal, and bonds were able to post some correction after European markets closed for the day. Thus, many mortgage lenders were able to make modest improvements to their morning mortgage rate offers. That helped, but wasn’t enough for the average borrower to avoid raising the 30-year fixed rate a little higher than yesterday.
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