Twitter Icon Facebook Icon Google Plus Icon RSS Feed Icon Linkedin Icon

Mortgage Rates Higher Despite Friendly Market Movement

Posted To: Mortgage Rate Watch

Mortgage rates are largely dictated by movements in bond markets–specifically mortgage-backed securities (MBS). When bonds improve, prices rise and investors are willing to pay more to buy loans. This results in rates moving lower. In other words, bond market improvement = lower rates. With all of that in mind, today is a bit of a paradox as the average lender is quoting slightly higher rates today, despite general improvements in bond markets. Nothing too terribly mysterious is at work here though. The inconsistency has more to do with the timing of Friday’s market movements and the generally narrow range over the past four days. Specifically, bonds weakened progressively into Friday afternoon and most lenders never fully adjusted rate sheets to account for that weakness. This left the average…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


Source: Mortgagenewsdaily

No Comments »

No comments yet.

Leave a comment