Bond markets experienced some positive momentum today due to some pretty major changes in policy coming from the BOE (Bank of England). This morning the BOE cut it's key lending policy from .5 to .25. This rate cut marks the first of it's kind since 2009. Notably, the BOE indicated that another rate cut is in the works for "close to, but a little above zero". Additionally, two stimulus efforts were set into motion, effectively making it easier for local banks to access cheaper, short term funds. This "term lending" facility, along with the increase in non-financial corporate bond buying, is designed to give the financial markets a jumpstart. The global financial concerns have been the focal point for policymaking across the board. Due to the BOE policy changes announced today, U.S. 10 year yields are down 2.5bps at 1.52. This marks the lower end of the recent trading range. The NFP report slated to come out tomorrow may break us through the lower boundary, and keep the momentum going in the right direction. Check back tomorrow for more mortgage news and rate updates.
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• 30 year (FRM) rates at 3.40% (+0.01%).
• 15 year (FRM) rates at 2.74% (+0.01%).
• FHA 30 year Fixed rates at 3.25% (+0.00%).
• Jumbo 30 year Fixed rates at 3.53% (+0.00%).
• 5/1 ARM rates at 2.82% (-0.01%).
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