Lowest Rates Since November 2016

Mortgage rates hit their lowest levels since November 2016 late last week and they’ve proceeded to set a new long-term low each day since then.  Today was no exception.  That’s fairly surprising at first glance, considering the underlying changes in the mortgage-backed securities (MBS) that most directly affect mortgage rates.
Typically, when I bring up MBS prices, it’s to highlight a discrepancy between the movement in Treasury yields and mortgage rates.  Many relatively savvy market-watchers and consumers mistakenly believe US Treasuries dictate mortgage rate movement when in fact, that’ the job of MBS.  It just so happens that MBS and Treasuries tend to move in lock-step.  When they don’t, we can see mortgage rates diverge from Treasury yields by small amounts….(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