Mortgage Rates Highest in More Than a Week

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Posted To: Mortgage Rate Watch

Mortgage rates moved higher again today, even though underlying bond markets were relatively flat. This is due to the timing of market movement over the past 2 days in conjunction with typical mortgage lender pricing conventions. Specifically, bonds weakened steadily throughout the day yesterday. Bond weakness implies higher rates, but not every lender will go to the trouble to adjust their rate sheet offerings unless the move is big enough. Even then, bonds can continue to weaken even after some lenders make mid-day adjustments. The net effect is that the mortgage market begins the subsequent day with a handicap–a certain amount of weakness that will need to be priced in regardless of any additional weakness in bonds. However, if additional weakness happens to show up in the morning, the…(read more)

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