Mortgage Rates Stabilize After Economic Reports
Average 30-year fixed mortgage rates have reached a two-week high, remaining within a narrow range of 6.15-6.20%, as reported by MND's index.
The market responded to recent economic reports and a significant Treasury department update concerning borrowing expectations. These announcements are critical as Treasury issuance levels directly influence U.S. consumer lending rates.
Increased Treasury issuance typically leads to a higher supply of bonds, which can result in lower bond prices and, consequently, higher rates.
The latest Treasury update indicated consistent short-term issuance but also suggested a probability of increased issuance in the next fiscal year. This initial news exerted upward pressure on rates. However, a subsequent report focusing on the services sector helped to stabilize the bond market.
Ultimately, this period of bond market stability corresponded directly with stable mortgage rates.