Here's Why Mortgage Rates Are Outperforming

For most lenders, mortgage rates improved again today, adding to the 3-week lows achieved yesterday.  We normally view mortgage rate movement primarily as a function of the bond market, but the bond market says rates should only be falling modestly from their recent highs.  What gives?
This is a 2 part issue.  First, there’s a difference between the overall bond market and the bonds that underlie mortgages.  So-called mortgage-backed securities (MBS) did a better job of holding their ground in August when compared to the broader bond market via the quintessential 10yr Treasury yield. …(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