Mortgage rates survive troubled waters despite geopolitical risks 💣🦈📉
Flash Market Update
Geopolitics have been the main catalysts for market volatility since the military operation in Iran first started eight weeks ago (Feb 27).
Fortunately, economic data hasn’t added much to the chaos; this week was no exception.
Absent any meaningful data, recent ceasefire headlines have dominated market sentiment.
As a result, the bond market has made strong gains since March 27.
Although peace talks seem to be at a stalemate this week, mortgage rates managed to stay afloat with minimal damage.
Meanwhile, news on Friday that the DOJ will be dropping its criminal indictment of Jerome Powell helped bonds erase the morning’s losses.
The day finished at the best levels since Monday, keeping the two-week trend positive.
RATE PRICE INDEX
The LendZen Index charts included above use a spectrum of MBS data and various lender rate sheets to calculate an average change in PRICE for all mortgage rates.
For example, if you received a loan estimate on 3/27 (red dot, image 2), the price of that rate is now approximately 130 bps lower or $1,304 less per 100k of loan amount.
Likewise, a rate quote from 4/20 (green dot) will be slightly more expensive today (12 bps, $121).
Unlike an “average rate” index, measuring the change in PRICE of rates provides a metric that borrowers can apply to their specific situation.
The online tool Compare LE uses the index data to normalization loan estimates, so that you get a true comparison as if both were issued on the same day.
Learn more about how to accurately compare estimates and find the best mortgage deal on this Substack Post.
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If you want to shop real-time mortgage rates and get instant qualification results without providing any contact information visit LendZen.com
LendZen provides a fully automated mortgage shopping experience that gives you anonymous access to all mortgage rates with full transparency of costs upfront as bond prices change.
You can also request an official Loan Estimate for the exact loan you created and save your scenario to revisit your rate options daily with one-click.
LendZen Inc. is an equal opportunity mortgage lender, NMLS 375788.