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Great Day For Mortgage Rates, But There's a Catch

Mortgage rates added to last week’s friendly rebound with their best single-day drop in more than a month today.  Weak economic data in Europe and tepid domestic data helped drive demand in safe-haven bond markets.  Higher bond market demand means lower rates, all other things being equal.  But it can take some time for movement in the bond market to translate to changes in mortgage lenders’ rate sheets.  Most of today’s improvements were due to bond market gains that were already in place by this morning.
As the day progressed, bonds drifted back in the other (less friendly) direction.  When that sort of drift results in enough bond market movement, mortgage lenders can change their rate offerings in the middle of the day.  Several of them did so today.  Those who didn’t will be more likely to offer slightly higher rates in the morning (unless bonds manage to bounce back in a friendlier direction again overnight).

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Source: mortgagenewsdaily.comNew feed

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