Mortgage Rates Continue Rising From Long-Term Lows

Mortgage rates were higher again today, extending a 2-day move from the lowest levels since early 2018.  The size and pace of the late 2018 improvements introduced the risk of a bounce even before last Friday’s key events.  But after those events, the correction has been fairly swift.  Let’s break those last two sentences down, as they contain a lot of implied information that isn’t readily accessible without some background.
Rates are based on trading in the bond market.  Like other markets, when momentum becomes lopsided, there’s a risk of a correction.  Momentum had arguably become lopsided in favor of lower stocks prices and interest rates heading into last week.  That created one aspect of risk for low rates….(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