Mortgage Rates 01-13-16

By Lisa Robison Updated on 1/13/2016

Mortgage rates fell sharply after yesterday's surprising bond rally.  This rally was likely the result of the fact that so many market participants are betting on rates moving higher, and when several traders are wagering on the same outcome, markets tend to punish the majority  Yesterday's events were particularly painful for those holding shorter positions, and also didn't last long.  From about 10:00am EST to about 2:00pm EST, we saw a decline in the Treasury yields, along with a spike in the price of Mortgage Backed Securities.  Corporate bond issuance also continues to make an impact by putting additional pressure on rates by adding more supply into the market.  Today marked the biggest corporate bond issuance in history, so there was quite a large disruption on that level. Today we have the 10 year note auction, and then tomorrow we see the Import and Export Prices, Initial Jobless Claims, and the 30 Year Bond Auction.  Friday is the release of the Retail Sales Report as well as the NY Fed Manufacturing data.  Check back tomorrow to see the most up to day mortgage news.                 

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• 30 year (FRM) rates at 3.93% (-0.03%).
• 15 year (FRM) rates at 3.18% (-0.02%).
• FHA 30 year Fixed rates at 3.60% (-0.05%).
• Jumbo 30 year Fixed rates at 3.74% (-0.02%).
• 5/1 ARM rates at 3.08% (+0.01%).