Rates Move Nicely Lower Heading Into The Weekend
It’s not a decisive victory, but rather, a nice way to end a week that had previously seen rates pushed over 7% for the first time in months.
The bond market (which accounts for most of the day-to-day momentum in rates) started the day on a strong note (strong = lower rates implied). The strength turned to weakness for an hour or so after the day’s hotly anticipated economic data. Thankfully, the data wasn’t tremendously strong (strong data = higher rates) and bonds were able to get back on a stronger track throughout the afternoon.
Multiple lenders issued mid-day price improvements. The net effect is a rate landscape that is still near the highest levels in months, but not as high as it was yesterday.
It’s also worth keeping in mind that the market is nimble and willing to react in a big way to important data on the horizon. We expect next week to be volatile for several reasons with the biggest move coming on Friday after the jobs report. There’s no way to know if that move will push rates higher or lower, only that it could be very big.