Mortgage rates hit their lowest levels in just over 6 weeks on Friday as investors braced for bad news in the banking sector. Such fears tend pull money out of the stock market and into bonds. Excess bond demand means lower rates, all other things being equal.
After a weekend without any new bank drama, investors were able to move back in the other direction. News regarding the sale of most of Silicon Valley Bank’s deposits and loans only added to the momentum.
The average lender was down below 6.5% for a flawless 30yr fixed scenario on Friday, but is now back above. [30 year fixed 6.54%]
• At 9:00 AM ET, S&P/Case-Shiller House Price Index for January. The consensus is for a 2.5% year-over-year increase in the Comp 20 index for January, down from 4.6% YoY in December.
• Also at 9:00 AM, FHFA House Price Index for January 2021. This was originally a GSE only repeat sales, however there is also an expanded index.
• At 10:00 AM, Richmond Fed Survey of Manufacturing Activity for March. This is the last of the regional surveys for March.