Let’s Talk About Lagging Mortgage Rates (No “Day Ahead”)

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Posted To: MBS Commentary

It's too late in the morning at this point to refer to this post as a "Day Ahead," so let's change course a bit and simply address the biggest burning question of the week: WHY ARE MORTGAGE RATES AND LENDER PRICING SO MUCH WORSE THAN WE FEEL LIKE THEY SHOULD BE RIGHT NOW? This will be written with the intention of standing as a knowledge base article that can be provided to those seeking clarity on this issue in the future. It will come up in the future–guaranteed–time and time again. What exactly are we talking about? MBS prices and lenders' mortgage rates have a tendency to improve much more slowly compared to the broader bond market during times of fast movement toward lower rates. Volatility compounds the issue. Why are we likely to see this time and again in the…(read more)

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