Rates Hold Steady Despite Stock Gains

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Posted To: Mortgage Rate Watch

Mortgage rates were roughly unchanged today. Some lenders even offered improved rates in the afternoon as underlying bond markets managed to hold modest gains. All this despite another winning day for stocks (5th in a row now). Much has been made of the interaction between stocks and bonds since last week’s stock market flash crash. Unfortunately many of the correlations mentioned in the news are fairly black and white. For instance, many people believe that stock prices and bond yields move higher together because a growing economy not only implies stronger stock performance, but it can also support higher rates. In practice, however, this correlation is hit and miss . It seemed to be hitting in the wake of last week’s crash and then again yesterday afternoon. Then today, bond markets (which…(read more)

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