Mortgage Rates Improve Modestly From Long-Term Highs

Mortgage rates began the day right in line with Friday afternoon's latest levels.  Lenders likely would have been able to offer lower rates if the bond market hadn't begun the day at weaker levels (bond market weakness = higher rates, all other things being equal).  As the day progressed, bonds improved enough for most lenders to make positive adjustments.  The so-called mid-day reprices left the average lender in just slightly better shape on the day.

For perspective, today's rates--apart from last Friday's--are the highest in more than 6 months.  Additionally, rates have been rising steadily since August, and relatively sharply since late September.  This is occurring as the market prepares for the Federal Reserve to announce a reduction in its bond purchases on November 3rd (which has been so well telegraphed as to be a sure thing barring a new catastrophe).  

Fed bond buying helps rates move or remain lower, but the market does a very good job of getting ahead of expected changes in policy.  That's arguably what they're doing right now (i.e. moving higher in anticipation of the unfriendly change from the Fed), and the reason that it may be tough to make any significant progress before then.