Mortgage Rates Drop Quickly as Market Panic Sets In

Mortgage rates dropped quickly today as global financial markets underwent a volatile shift.  When money is flowing out of stocks and into bonds (as it was today) rates move lower.  There are several underlying reasons for the move and it’s impossible to assign a value to each of them with perfect precision.  Several of the most noticeable ingredients include: ongoing trade tensions, political upheaval in Britain, and weak economic data early in the day.  Even though “stock selling” can be seen as an “effect” as opposed to a “cause,” it was big enough that it created additional momentum for the bond/rate market.  Simply put, when that much money is flowing out of stocks, it needs a safe place to hide.  That place is often the bond market….(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