Highest Charges in a Week After Surprisingly Robust Financial Stories
Mortgage rates pulled higher back today, bringing the average lender to its worst since last Thursday. Due to the recent regulatory changes, there are some exceptions to this. In particular, many lenders have improved second home and investment property loans. This is the short version. If you need background information, here is the long version.
The average credit scenario remained unaffected by the regulatory changes, allowing it to respond to the weakness of the bond market of the day. Bonds reacted immediately to two economic reports that came in much stronger than expected this morning. In general, stronger data pushes bond prices down and yields (also known as “rates”) higher. This was due in this case to retail sales for August and the Philadelphia Fed’s Manufacturing Outlook Survey in early September. Both came out at 8:30 a.m. ET, and by 8:35 a.m. the damage was done.
By and large, today’s drama is a drop in the ocean. Interest rates have remained largely sideways since July, with most traders expecting more volatility on Wednesday afternoon following the Fed’s announcement next week.