Mortgage Rates Rise Slightly, But Still Close to Long-Term Lows

This past week saw mortgage rates creep up, with Friday proving to be the weakest day for the underlying bond market. As bonds, which directly influence mortgage rates, lost some ground, this translated into higher rates for lenders. The catalyst for this was stronger-than-expected retail sales data, particularly the “core” numbers that exclude volatile categories like automobiles, fuel, and building materials.

Initially, the bond market did not respond aggressively, but by Friday afternoon, trading conditions began to worsen, leading to a loss of bond values. As bonds lose value, they exert upward pressure on mortgage rates. As a result, several lenders issued slightly higher rates in the afternoon, making Friday the highest rate day of the week.

Despite this uptick, it’s important to note that today’s mortgage rates remain relatively close to long-term lows. Aside from the past 9 business days, the current rates are still among the lowest seen since early October 2024. This indicates that even with the slight rise, rates are still favorable compared to recent months.

Overall, while rates saw a modest increase, they remain near historically low levels, which continues to offer opportunities for prospective homebuyers and those looking to refinance. However, the market remains volatile, and shifts in economic data and bond performance will continue to play a key role in determining where mortgage rates go from here. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.