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"Calm" is a relative term. For the second straight period, lenders issued one rate sheet daily on more days than they issued multiples.  Contrast this to 6 months ago when lenders issued at least three rate sheets per day, on average.

Versus March, volatility is increasing.  Mortgage rates are changing 31 minutes faster.

It's been an interesting few weeks for the mortgage rates.  Or, maybe "inconsistent" is a better word.  See, mortgage rates are supposed be based on mortgage bond market market.  As bond prices go up, mortgage rates are supposed to come down.  Conversely, as bond prices fall, mortgage rates should rise.

That's why something strange seems afoot.

Rates only loosely track bonds these days and it's because lenders no longer price loans with razor-thin margins. It's a function the largest demand for mortgages since the Refi Boom of 2003. According to Bloomberg, some banks even admit to inflating their mortgage rates for the purposes of slowing the flow of new applications.

This is fine when one bank does it, but when every bank props rates up -- and from this loan officer's chair, it appears that's what's happening now -- it's anti-consumer.  Because banks of this behavior, Cincinnati's homeowners are never getting the full benefit of the Federal Reserve's $1.5 trillion mortgage market intervention, nor are they getting access to lower rates when bond markets enter Peanut Butter Jelly Time.

It's like a gas station keeping pump prices high while the cost of oil falls.

You wouldn't know it from looking at the pie chart, but mortgage markets are still volatile.  It just looks more stable than in the past because some lenders are keeping rates artifically high to "slow down" business.  Because these rates are also fat with proifits, lenders aren't forced to reprice as often when market pricing gets worse.

On the surface, mortgage markets look calm. They're not.  Just the lenders are.

Over the last 30 days, on average, mortgage rates changed every 4 hours 44 minutes.

Dan Green is an active loan officer. Email or call 513-443-2020. Dan is on Twitter at @mortgagereports.