Mortgage Rates Move Up Despite Market Gains

When bonds make “gains,” it means that bond prices are moving up.  The price of a bond is like the amount that a lender is willing to pay for the right to collect a certain amount of interest.  The more the lender is willing to pay, the lower that lender’s “yield” will be.  Looked at another way, the lower your interest rate would be in the case of a lender making you a mortgage loan.  For that reason, we expect to see mortgage rates fall when bonds are making gains (mortgages are based primarily on bond prices/yields).  But in today’s case, rates went a bit higher even though bonds improved….(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