Mortgage Rates Recover Most of Yesterday's Losses

Mortgage rates moved higher yesterday after a poorly-received 30yr bond auction (read more…).  The bond market began to heal in the overnight trading session.  By the time US traders clocked in this morning, more than half of the weakness had been erased.  As the day progressed, things have only improved.  All this despite another hotter-than-expected inflation report (something that traditionally puts upward pressure on rates) to kick off the day.
While inflation is indeed bad for rates, all other things being equal, there are several caveats at the moment.  The first is that the current inflation spike is well understood as being driven in large part by covid-related supply chain disruptions, even if the boundaries are not easy to predict in the short term.  Everyone hopes or expects the inflationary surge to be temporary and markets are trading accordingly–for now.  …(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