Mortgage Rate Volatility Will Increase From Here

Posted To: Mortgage Rate Watch

Mortgage rates were roughly unchanged today. That’s not too surprising considering lenders don’t tend to make big moves on the Friday after Thanksgiving, regardless of market conditions. Moreover, they’re working with a shorter-than-normal trading day. Bonds normally trade through 5pm Eastern time with 3pm being the deadline for many of the biggest players. When bonds close early, trading is only open through 2pm and the deadline for the biggest players is a moving target– especially on the day after Thanksgiving. When Federal/Bank holidays result in bonds having a day off, it’s not uncommon for an adjacent day to be one of these “early closes.” With most holidays, the market closure is contiguous (i.e. an early close day will precede a fully-closed day), thus making it clear to traders when…(read more)

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