Mortgage Rates Steady Today, but Volatility Looms

Mortgage Rates Steady Today, but Volatility Looms

Mortgage rates were generally unchanged to begin the short work-week for financial markets, though that wasn't the case at first. Earlier this morning, most lenders were quoting higher rates than those seen last Friday. Markets improved rather significantly during the course of the day, allowing most lenders to 'reprice' to lower rates, thus bringing them back in line with Friday's. Despite the apparent lack of volatility today, the rest of the week could see much bigger moves depending on the outcome of the various economic reports that will be released between now and Friday.

In addition to the data, financial markets are perhaps even more sensitive to news regarding the potential for a Fed rate hike in mid-June. Today, for instance, a poll came out saying that the U.K. was slightly more likely to exit the European Union (aka "Brexit")--something that could cause the Fed to leave rates unchanged in June. So when the Brexit odds increased, interest rates moved lower in financial markets.

Granted, this isn't the only consideration moving interest rates, but it speaks to the diverse sources of volatility in the coming days as investors increasingly try to decide if the Fed will hike in June.