Mortgage Rates Drop to New Multi-Year Lows

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Posted To: Mortgage Rate Watch

Mortgage rates fell again on Friday as lenders finally saw recent bond market gains stabilize enough to act on. In other words, lenders don’t always keep their mortgage rate offerings moving in lock-step with the underlying bond market (which dictates rates over time). This helps protect them from potential volatility, which ultimately allows them to keep rates lower than they otherwise would be (volatility is costly in the mortgage rate world). Yesterday’s bond market movement was big and unexpected. It took 10yr Treasury yields to the lowest levels since November 2016. Mortgage rates weren’t able to say the same until today. Interestingly enough, the bonds that specifically underlie mortgages failed to make any major improvement today (which is an entire piece of analysis unto itself). That…(read more)

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