Mortgage Rates Near 2-Month Lows After Jobs Report

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Posted To: Mortgage Rate Watch

Mortgage rates moved back down to yesterday’s levels after a much weaker read on job creation from the Labor Department. In general, weak economic data tends to push investors away from stocks and toward safer-haven assets like bonds. Excess bond-buying demand causes bond prices to rise and rates to fall. The only catch with today’s jobs report reaction is that movement in the bonds that specifically underlie mortgages was a bit smaller than in the broader bond market. For instance, the price of 10yr US Treasuries rose more than twice as much as the price of the most common mortgage-backed-security (MBS). In addition to lagging MBS, mortgage lenders haven’t been keen on making big changes to their rate sheet offerings. As a result, rates are better today, but for some lenders, it’s just as…(read more)

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