January 4th, 2014 11:36 AM by Jackie A. Graves
Mortgage rates were even more unchanged today than yesterday. Not only was the average rate among various lenders unchanged, but individual lenders all stayed closer to the yesterday's rate sheets, whereas some were a bit higher or lower yesterday.
That said, the flatness was only accomplished after some mid-day price changes when improving market conditions allowed lenders to release better rate sheets. Before that, the day's average would have been slightly higher. 4.625%remains the most prevalently quoted rate for ideal, conforming 30yr Fixed loans (best-execution).
Although the holidays are officially behind us, the bond markets that underpin mortgage rate movement have managed to remain in "holiday mode." Part of this has to do with the fact that this week still contained a day and a half of down time for bond markets, but the blizzard in New York certainly didn't encourage traders to be in the office.
This time around, light holiday activity didn't result in any extreme volatility for interest rates, as it sometimes can. Although we shouldn't necessarily expect excessive movement in either direction, the level of activity should pick up next week. More traders will be back from vacations (forced or otherwise) and important data will require more attention, especially Friday's Employment Situation Report. The implication of increased activity ismore potential movement in rates, for better or worse.