Mortgage rates fell again today extending a 3 day winning streak after shooting abruptly higher in the middle of last week. That damage hasn't been completely undone yet, and we shouldn't expect it to be, given that underlying trading levels in bond markets have yet to make it back to the stronger levels seen last Tuesday. In addition, it's the nature of the mortgage market for rates to move up more abruptly than they move down.
3.75% remains the most prevalently-quoted conventional 30yr fixed rate for top tier scenarios. Most of the lenders that moved up to 3.875% with last week's spike are now back down to 3.75% and a few of the most aggressive lenders are offering 3.625%, but the vast majority are at 3.75%.
Markets have been largely preoccupied with the month/quarter end trading process. While traders typically react to news and economic data, there are other reasons to move money beyond the the direction of the economy. Many investors are tasked with investing according to the decisions of their clients. Month-end, and especially quarter-end are busier times for this sort of housekeeping trading.
Even so, the morning's economic data managed to create volatility, but it was subdued compared to what it might have been if not for the month/quarter-end environment. Naturally, with tomorrow marking the beginning of a new month, traders will have more liberty to react to the regular set of inputs. Incidentally, those inputs increase in importance, meaning there is an exceptionally wide range of possibilities tomorrow, for better or worse.