Mortgage Rates Slightly Lower Despite Market Weakness

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Posted To: Mortgage Rate Watch

Mortgage rates moved just slightly lower today, despite the fact that bond markets were suggesting a move in the other direction. Mortgage rates are primarily determined by the prices of mortgage-backed-securities (MBS), which tend to behave a lot like 10yr Treasuries over time. Both Treasuries and MBS lost ground today, meaning their prices moved lower and their yields moved higher. This typically results in mortgage lenders offering slightly higher rates, but it was not the case today. What gives? There are at least two factors to consider when trying to piece together justification for today’s rate sheet resilience. First of all, lenders hadn’t fully adjusted rate sheets to replect the gains seen last Friday. In fact, lenders have consistently been hesitant to get too aggressive with rates…(read more)

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