Mortgage Rates Lowest in More Than a Month

Posted To: Mortgage Rate Watch

Mortgage rates improved today, hitting the lowest levels in more than a month. Bond markets (which underlie mortgage rates) generally improved last week as the new administration’s ability to get policy changes through Congress was called into question by the breakdown of the new healthcare bill. As of last week, there was some hope that debate would resume this week and that the bill wasn’t completely dead. As the weekend passed without meaningful updates, markets increasingly assumed failure. One of the primary functions of government and mortgage-backed bond markets is to serve as a “risk-free” investment. It might seem strange to consider mortgage-backed securities (MBS) as “risk-free” with the mortgage meltdown being a fairly recent phenomenon, but indeed, today’s MBS are as risk-free…(read more)

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Source: Mortgage News Daily

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