Mortgage Rates Continue Higher Despite Bond Market Gains

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Posted To: Mortgage Rate Watch

Mortgage rates moved up again today, despite modest improvement in the bond market (which typically coincides with lower rates). Part of the reason for the counter-intuitive behavior is timing. Bonds lost ground yesterday afternoon. This implied higher rates, but many lenders didn’t end up changing their mortgage rates. That meant the average lender began the day with a handicap. Moreover, today’s bond market improvement didn’t show up until a few hours into the morning. Also at issue is the occasional discrepancies we see between broader bond markets and those that underlie mortgage rates. It’s a common misconception that 10yr Treasury yields determine mortgage rate movement on any given day. That’s only MOSTLY true, and even then, it’s more like they are supplementary investments that simply…(read more)

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