Mortgage Rates Can Only Hold Out For So Long

It was a bit of a bittersweet day for mortgage rates.  On the one hand, it was the Fed’s first day buying a new category of mortgage-backed bonds–one that would help pave the way for rates to move gradually lower if the broader bond market remains in reasonably strong territory.  On the other hand, the broader bond market had a very bad day, thus raising questions about how much longer it will remain in reasonably strong territory. 
Mortgage rates have been doing a very good job of resisting the implications for higher rates seen in the broader bond market, but there’s a limit to how long they can continue to hold out.  If we continue having days like today in the broader bond market (i.e. 10yr Treasury yields rising more than 0.06%), mortgage rates will increasingly be compelled to move in the same direction….(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