The Smart Team of NOVA® Home Loans

Mortgage Rates Hold Steady in Spite of Markets

Posted To: Mortgage Rate Watch

Mortgage rates were steady to slightly lower today, even though bond market movement suggested a move higher. That’s interesting because mortgage rates are driven primarily by bond market movement. It’s not common to see the two moving in the opposite direction. So what gives? In today’s case, the discrepancy is pretty easy to explain. Bonds and rates both improved fairly substantially yesterday. Bond markets improved a bit more in the afternoon and most lenders didn’t have the time or the will to react with rate sheet improvements. The late day bond market gains also set a high bar for today’s measurement of improvement. In other words, today’s “day-over-day change” looks worse than it is, simply because yesterday’s closing levels were so good. A more holistic view shows the bonds underlying…(read more)

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Source: Mortgage News Daily

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