The benchmark 30 year fixed rate mortgage fell 2 basis points from 5.73 to 5.71 according a MortgageLoan.com survey of national lenders.
Earlier this week, in a surprise .75% cut to the Fed Funds Rate by the Federal Reserve, rates plunged lower, with the average 30 year fixed hitting a low of 5.57%, however this drop was reversed the following day when the stock market staged a remarkable comeback. Bonds followed suit, reversing their gains, and pushing back up retail mortgage rates to their original levels.
Focus this week in mortgage rate markets was on the overall health of the economy and the stock market, and not on individual economic reports. The Fed's emergency rate cut was the largest ever in history, and prevented what many expected would be a huge stock market sell-off. The recovery, later in the week, by the stock market demonstrated to mortgage markets that the health of the economy many not be as dire as many believe, but the jury is still out and we certainly may be in for continued volatility over the coming weeks.
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