Mortgage Rates Inch Higher as Bonds Suggest More Trouble Ahead

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Posted To: Mortgage Rate Watch

Mortgage rates moved higher today as bond markets continued a mildly weaker trend for the month of April. Bonds (which underlie rates) are under pressure for a variety of reasons. The most notable headwinds are longer-term and bigger-picture. Rates responded to these headwinds in a fairly big way in Jan/Feb and have basically been “taking a break” since then. Rates have moved very little during this “break,” with most borrowers being quoted the same NOTE rate on any given day in the past 2 months. Upfront costs have been the only way the modulate the EFFECTIVE rate of the average lender’s 30yr fixed quote. Today’s move in bonds brings 10yr Treasury yields to their highest levels since March 21st. While this, in and of itself, doesn’t rekindle the same sort of drama seen in the first 2 months…(read more)

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