Mortgage Rates Slightly Higher to Start September, Remain Near October 2024 Lows
Table of Contents
Published: September 3, 2024 | Updated: September 3, 2024
Understanding Early Month Market Fluctuations
Mortgage rates are intrinsically linked to the bond market, and the first and last trading days of each month frequently enough exhibit unusual volatility. This isn’t random; while the specific drivers are often complex and not immediately tied to typical economic data releases, market movements are always attributable to underlying factors.
These fluctuations can be subtle, but are a consistent pattern observed by market analysts.
European Bond Market Impact
Recent movements in U.S.bond yields were partially influenced by performance in European bond markets. When domestic economic news is limited, the U.S. market frequently takes cues from its European counterparts.A weaker performance in European bonds this morning translated into upward pressure on U.S. yields overnight.
Reports suggesting that legal challenges to former President Trump‘s tariffs were driving higher rates proved largely unfounded. The timing of these reports – released after Friday’s market close – made an immediate impact unlikely. Had the news been a significant factor, its influence would have been visible when Asian markets opened Sunday evening. the correlation between the news and the subsequent bond market movement was minimal.
overall Rate Movement
Despite these influencing factors, the overall increase in mortgage rates was modest. Top-tier 30-year fixed rates experienced a rise of approximately 0.03%, leaving the average lender’s rates aligned with the lowest levels seen since October 2024.
