The yield on the 10-year U.S. Treasury note drifted lower. The yield hovers around 2.8%. Mortgage rates dipped to their lowest level in two months. This all occurred last week.
It shouldn’t have occurred. The headline news points to Treasury yields and mortgage rates moving to higher ground.
It has been nice over the past couple weeks.
Mortgage rates have drifted lower, even if they remain range-bound. The 4.5%-to-4.625% range on the prime 30-year fixed-rate loan still holds, as it has held for the past couple months. The good news is that quotes have held mostly at the low-end of the range.
By many estimations, bidding wars have become much more common in many segments of the U.S. housing market. In recent years, relatively high demand amid low housing supply has pushed up the price of homes throughout the country. This trend, coupled with the population density and heightened competition within many urban areas, creates the perfect storm for a bidding war. However, with a combination of luck and negotiating skill, it is possible to emerge victorious from a bidding war.