Mortgage Rates Slightly Lower Despite Bond Market Weakness

Mortgage rates moved slightly lower today despite moderate weakness in the bond market.  Typically, bond weakness results in rates moving higher, all other things being equal.  The most common reason for these sorts of discrepancies can be summed up with one simple word: TIMING.  
The bond market moves throughout the day.  Mortgage lenders, however, prefer to adjust rates only one time each morning, although they will issue mid-day reprices if the bond market is volatile enough.  In yesterday’s case, bonds improved throughout the day, but not enough for the average lender to issue a mid-day reprice.  Even then, lenders don’t tend to pass along all of the improvement implied by bond market gains all at once.  …(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