Mortgage rates today, August 6, 2019, plus lock recommendations

What’s driving mortgage rates today?

Average mortgage rates fell yesterday, as we predicted. As a result, they’re now at their lowest level in 33 months.

However, mortgage lenders didn’t keep pace to fully reflect yesterday’s tumbles in other key markets because they failed to promptly adjust their rates sheets. And they’re likely to play catch-up today. So, even if those other key markets avoid further falls or rise a bit, that hangover from yesterday could see lower rates.

That all means that mortgage rates today look likely to fall yet again. It would take some appreciable rises in stock markets and falls in gold prices and Treasury yields to stop that. And, mostly, only small ones are currently apparent. But, as always, events might yet overtake that prediction.

Financial data affecting today’s mortgage rates

First thing this morning, markets looked set to deliver mortgage rates today that are lower. By approaching 10 a.m. (ET), the data, compared with this time yesterday, were:

• Major stock indexes were nearly all appreciably higher soon after opening (bad for mortgage rates). When investors are buying shares they’re often selling bonds, which pushes prices of Treasurys down and increases yields and mortgage rates. The opposite happens on days when indexes fall. See below for a detailed explanation
• Gold prices inched up to $1,478 an ounce from $1,476. (Good for mortgage rates.) In general, it’s better for rates when gold rises, and worse when gold falls. Gold tends to rise when investors worry about the economy. And worried investors tend to push rates lower)
• Oil prices held steady at $55 a barrel (good for mortgage rates, because energy prices play a large role in creating inflation)
• The yield on 10-year Treasurys inched up to 1.77% from 1.76% (bad for borrowers). More than any other market, mortgage rates tend to follow these particular Treasury bond yields
•  CNNMoney’s Fear & Greed Index rose to 29 from 23 out of a possible 100 points. It stood at 61 this time last week. (Bad for borrowers.) “Greedy” investors push bond prices down (and interest rates up) as they leave the bond market and move into stocks, while “fearful” investors do the opposite. So lower readings are better than higher ones

It might be yet another good day for mortgage rates. by The Mortgage reports