Modest Recovery For Mortgage Rates

After one of the best 3-day winning streaks in decades last week, mortgage rates jumped a bit to start the new week.  That jump turned out to be a temporary correction as Tuesday brought a mild recovery.  

Rates are determined by trading levels in the bond market and bonds take cues from many sources.  On many trading days, the initial tone is set by overseas trading that takes place overnight.  That was the case today as weak economic data in Europe put downward pressure on rates globally.

During domestic hours, things didn't change much.  Agreeable comments from Fed speakers allowed bonds to hold the overnight gains.  At 1pm ET, strong demand at the 3yr Treasury auction helped bonds improve a bit more.

The average mortgage lender was able to offer rates that were slightly better than Monday's, but still not as low as Friday's.