Mortgage Rates Are Great, But They Could Be Greater

The world of mortgage rate analysis is both simple and complicated.  On a simple note, rates are near long-term lows and they’ll generally continue to follow the broader market for interest rates (which is largely based on US Treasuries, domestically).  On the more complex note, mortgage rates aren’t directly tied to Treasuries, don’t move frequently throughout the day, and can vary from lender to lender.  Due to those 3 factors, we get days like today where 10yr yields are down significantly (normally a good indication that mortgage rates will be down), yet some lenders are actually offering somewhat higher rates compared to last Friday!  What’s up with that?
Generally speaking, the lenders who are worse off today are those who were more aggressively priced on Friday.  Compare today to last Wednesday, and most lenders have dropped by a similar amount.  Even then, the average lender is just slightly lower in rate today, which means we’re still operating on the edge of the lowest levels in more than a year. …(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