Best day since Brexit for mortgage rates

Screen Shot 2016-07-29 at 8.59.35 AMBy Matthew Graham | Mortgage News Daily

Mortgage rates fell at the quickest pace in more than a month Thursday as lenders priced-in the market improvements seen after yesterday’s Fed Announcement. Even though quite a few lenders offered improvements yesterday afternoon, the so-called “reprices” were conservative compared to improvements implied by trading levels in mortgage-backed-securities (the bonds that most directly affect mortgage rates).

This lag effect between markets and rate sheets has been a fixture in the post-Brexit mortgage rate environment, and it has frequently resulted in today’s rate sheets reflecting yesterday’s market movement. The only catch is that today’s market movement can’t backtrack too far in the other direction. Simply put, lenders were prepared to offer lower rates yesterday, but needed confirmation that market improvements would stick around.

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