Rates are higher than they were last week, but are still on the lower end. Compared to two weeks ago, the 30-year fixed rate mortgage is 9 basis points lower at 5.45% while the 15-year mortgage is 4 basis points lower at 4.84%.
The 10-Year Treasury yield (a good tracker for mortgage rates) topped 2.9% yesterday after Retail Sales met expectations. Minor fluctuations aside, traders are starting to find support in terms of a floor. However, we may keep seeing sideways movement rather than a ceiling until the Fed gets a grip on inflation levels. Higher prices also contributed to an 8 point dent in homebuilder confidence to 69. This is the biggest month-over-month drop in two years and the lowest the index has been since the start of the pandemic. The biggest contributors were the 6-month sales outlook, which fell 10 points, and buyer traffic, which fell 9 points.