Mortgage Rates Living Their Own Life By Their Own Rules

You might think you know mortgage rates.  You might make assumptions about where they’ll go and what they’ll do based on past precedent.  For decades, you may have done a nearly flawless job of that simply by drawing the exceedingly logical conclusion that mortgage rates tend to behave a lot like other longer-term bonds.  After all, bonds and mortgages are both loans.  They’re both fixed income investments.  And to cap it all off, the average mortgage “becomes” a bond, in a manner of speaking, with its underlying cash flow being traded alongside the most quintessential bonds like 10yr Treasury Notes….(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.
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