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Mortgage Rates Under Pressure as Market Volatility Picks Up

Mortgage rates have been spoiled, relatively, by an extraordinarily calm/narrow trading pattern in the bond market.  That’s important because the bond market directly affects the day to day changes in mortgage rates.  A narrow/calm trading pattern means bond prices aren’t moving.  The implication is that mortgage rates wouldn’t need to move much either.
That WOULD be the case were it not for the new adverse market fee being phased in by every lender that offers conventional refinances (pretty much all of them).  Additionally, the historically low rates forced lenders to change their pricing based on their capacity at times.  In other words, there have been a few solid reasons for mortgage rates to move on any given day/week even though the underlying bond market hasn’t suggested much movement since mid-August at least.
But now the bond market IS moving, and that will always be something the mortgage market has to consider when setting rates.  Let’s just say today’s move–while not remotely the worst we’ve ever seen–was bad. …(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

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