Mortgage rates side-stepped today, bringing an end to a gentle but consistent move lower over the past 5 business days. During that time the average conventional 30yr fixed rates for top tier scenarios fell about an eighth of a percentage point (0.125%). While that only translates to about $7 per month for every $100k financed, it’s a pretty decent move historically speaking. Today’s bond market momentum suggests the move could be in jeopardy.
Bonds are the most direct source of inspiration for mortgage rates, and indeed, for rates in general. The 10yr Treasury yield tends to track mortgage rates exceptionally well, and it was roughly 0.03% higher today. The average lender, on the other hand, didn’t change mortgage rates at all. This has to do with the separate set of bonds specifically tied to mortgages: the aptly-named Mortgage-Backed Securities (MBS). These held steadier today for a variety of reasons. Simply put, Treasuries had a certain set of concerns not shared by MBS.
…(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