2 Paradoxes For Mortgage Rates

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Posted To: Mortgage Rate Watch

Mortgage rates were microscopically higher today, which is paradoxical on two levels. The first paradox has to do with today’s bond market improvements. Bonds underlie rates and bond market improvements coincide with rates moving lower–usually! In some cases, the day-to-day change in the bonds that underlie mortgage rates can be quite a bit smaller than the change in US Treasuries (the core of the US bond market). That was part of the problem today. The other part had to do with weakness yesterday afternoon. That weakness meant today’s improvements merely got mortgage-backed bonds back to yesterday morning’s levels despite being in stronger territory compared to yesterday afternoon’s latest levels. The second paradox has to do with the most prevalent mortgage rate headline out in the world…(read more)

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