One of the key principles of mortgage rate movement has to do with the frequency of mortgage rate changes.  Specifically, mortgage lenders prefer to update rates once per day. This is notable because mortgage rates are based on bonds, and bonds are constantly trading.  The compromise is that mortgage lenders will indeed change rates more than once a day, in cases where bonds move enough to force their hands. This concept is relevant today because it explains why rates are both higher and lower, depending on the lender in question. Yesterday, bonds were moving in such a way that prompted some lenders to raise rates in the afternoon.  Other lenders held steady and simply raised rates this morning instead.  Lenders who raised rates yesterday were fairly close to the same levels this morning, and many of them were actually slightly lower. On overage, though, this morning’s rates were higher than yesterday’s.   To make matters just a bit more confusing, we’re once again seeing enough market movement for lenders to make mid-day changes today, but this time, it’s in a friendly direction.  A small handful of lenders have offered modest improvements, but even if every lender followed suit, yesterday morning’s rates would still be slightly lower.  To repeat a phrase from yesterday, yes, this is much ado about nothing.  Top tier, conventional 30yr fixed rates are still orbiting 6.75% in a calm, narrow range in the bigger picture. 

Bostic now sees price growth returning to the Fed’s 2% goal at some point in early 2027.

Officials in the Trump administration have floated the idea of changing how the government measures economic growth. Economists say the shift would create new expenses for banks.

Acting Comptroller Rodney Hood discussed using fintech to evaluate self-employed borrowers’ creditworthiness, saying alternative credit models could promote financial inclusion.

The new name Cotality, along with its latest tag line, reflects its role in serving and uniting the entire property ecosystem, company executives said.

Trade groups representing banks and utilities urged lawmakers to reauthorize the CISA law before it expires in September.

Yields Pushing Range Boundaries After Tariff Updates and Econ Data

Bonds lost ground over the weekend as news of tariff exclusions fueled a stock rally.  A modest recovery was underway when the S&P Services PMI came out stronger.  From that point on, bonds were on the back foot, ultimately hitting their weakest levels in the afternoon.  Incidentally, this brings 10yr yields right in line with the ceiling of the recent range. Today’s video discusses the implications of a potential range breakout, which can mean different things for different people. 

Econ Data / Events

S&P Services PMI

54.3 vs  50.8 f’cast, 51.0 prev

Market Movement Recap

09:32 AM Moderately weaker over the weekend, but recovering somewhat now.  MBS down an eighth and 10yr up 3.5bps at 4.289

09:56 AM Some additional weakness after PMI data.  MBS down nearly a quarter point and 10yr up 6bps at 4.316

02:20 PM 10yr yields are up nearly 8bps at 4.333 and MBS are down nearly 3/8ths after hawkish comments from Fed’s Bostic (but not obviously because of Bostic, necessarily).

03:48 PM Little changed from previous update and flat since then.  MBS down 11 ticks (.34) and 10yr up 7.9bps at 4.334

Wall Street is weighing in on the possible fate of home loan giants Fannie Mae and Freddie Mac, after a fleeting suggestion by Treasury Secretary Scott Bessent earlier this week that the government’s stakes could eventually become part of the proposed US sovereign wealth fund.

Effective March 18, the department is retracting eligibility for non-citizens, it announced.

Over 100,000 loans for first-time home buyers have been pooled and securitized in issuances this year, the guarantor of government-backed loans said.