Mortgage rates have been on a wild ride this week due to volatility in the bond market, which has been influenced by positive economic indicators. However, as of today, the markets seem to have stabilized, leading to improved interest rates.

Bond Market Volatility Impacts Mortgage Rates
The day began with a significant jump in mortgage-backed securities (MBS) of 19 basis points (bps) at 8:38 AM. This upward trend continued, reaching a 13 bp increase by 10 AM, with UMBS 30-year 5.5 at 100.44. Despite this initial volatility, the Dow is down 100 points, suggesting a potential market correction.

No major economic data is expected to be released today, which may contribute to the market’s stabilization.

Rate Update: Current Mortgage Rates
For a 30-year conventional fixed-rate mortgage on a $400,000 home with a 20% down payment, the par rate currently stands at 6.500% (APR 6.706%), resulting in a principal and interest (P&I) payment of $2,023. However, borrowers willing to pay discount points of $17,990 can secure a lower rate of 5.00% (APR 5.713%) with a P&I payment of $1,718.