Mortgage rates bounced back up today as the underlying bond market continued the selling trend seen on 3 out of 4 days so far this week. In the overnight hours, bond yields (which generally correlate with mortgage rates) moved higher in concert with rising oil prices.
That said, it would be a mistake to assume this is the only correlation in town. Oil prices continued to rise sharply during domestic hours, but bond yields remained flat–possibly benefiting from safe-haven demand following heavy losses in stocks.
The average top-tier 30yr fixed rate is still under its recent highs, but after today’s jump, it’s fairly close. This is a victory of sorts, considering 10yr Treasury yields are clearly above their recent highs.
