Market in a Minute - For the Week Ending October 12, 2018
The weekly rate change was small, yet mortgage rates continued to creep up as 10-year Treasury bond yields hit a 7-year high. Rising bond yields pressure mortgage rates higher. Along with a growing economy, inflation puts upward pressure on rates. Core wholesale inflation (stripping out food and energy prices) rose slightly in September. The labor market continues to show strength, despite jobless claims coming in higher than expected last week. Claims still remain near a 49-year low.
Although mortgage rates have risen, applications still remain strong. Purchase applications were down 1% over the previous week but 2% higher over last year. CoreLogic shows that loans 30 days or more past due dropped from 4.3% to 4.1%. Seriously delinquent loans also dropped from 1.7% to 1.6%. Home inventory is showing signs of improving in different markets across the nation. More inventory could help offset rising mortgage rates to improve sales.
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Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.