Mortgage rates are sort of all over the place at the moment, and almost never where you’d expect. Those who haven’t been following the bond market too closely generally expect higher rates than what we’ve been seeing recently. Those who are well-versed in the longstanding relationship between mortgages and Treasury yields generally expect rates to have fallen MUCH faster than they actually have.
Even on shorter time horizons, the mortgage market is a tale of misdirection. For example, 10yr Treasury yields are basically unchanged today, but mortgage rates are either higher or lower depending on the lender. Some lenders responded to market conditions on Friday and bumped rates slightly lower. Among those lenders, some are in roughly similar shape today, but several responded to today’s market conditions (which were the opposite of Friday’s, and bumped rates slightly higher. Then there are the lenders who didn’t make a move on Friday. Most of them are slightly better today, but face hurdles tomorrow to account for today’s volatility.
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Source: mortgagenewsdaily.comNew feed