Mortgage Rates Hold 14-Month Lows

Mortgage rates didn’t budge today–a logical result with no signs of life in underlying bond markets.  In the current case, this is just fine with us considering the bond market has gone silent while remaining at the best levels in 14 months.  Specifically, mortgage-backed-securities (MBS, the most important ingredient in determining mortgage rates) are at 14 month highs.  When MBS are higher, rates are lower (14-month lows in this case).  10yr Treasury yields, on the other hand, spent a few hours at stronger levels on January 3rd, 2019.
The only reason I bring up the modest discrepancy between Treasuries and MBS is to illustrate a point that we should keep in mind this week.  Treasuries are capable of moving much more quickly than mortgage rates.  That’s why Treasuries made it to lower rates in early 2019 whereas MBS didn’t have time to react by comparison. …(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