Mortgage Rates Behind the Curve For 2nd Straight Day

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Posted To: Mortgage Rate Watch

Mortgage rates improved today but it was largely a byproduct of yesterday’s market movement that didn’t make it onto lenders’ rate sheets at the time. Mortgage lenders set rates based on trading levels in mortgage backed securities or MBS (the bonds that groups of mortgages turn into when they’re traded among financial firms on the secondary market). None of the esoterica above is too important as long as you understand that there’s moment to moment trading in the bond market providing the primary consideration for mortgage lenders setting rates. If that market moves enough in the middle of the day, lenders may make mid-day adjustments to rate sheets. Yesterday saw almost enough of an improvement for lenders to offer lower rates. As such, today’s morning rate sheets were better than yesterday…(read more)

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