2 Paradoxes For Mortgage Rates

Mortgage rates were microscopically higher today, which is paradoxical on two levels.  The first paradox has to do with today’s bond market improvements.  Bonds underlie rates and bond market improvements coincide with rates moving lower–usually!  In some cases, the day-to-day change in the bonds that underlie mortgage rates can be quite a bit smaller than the change in US Treasuries (the core of the US bond market).  That was part of the problem today.  The other part had to do with weakness yesterday afternoon.  That weakness meant today’s improvements merely got mortgage-backed bonds back to yesterday morning’s levels despite being in stronger territory compared to yesterday afternoon’s latest levels….(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.
Source: mortgagenewsdaily.comNew feed