No Easy Victories For Mortgage Rates

10yr yields may have hit their lowest levels in months in the wee hours of the morning and people may always perceive a bit too much correlation between 10yr yields and mortgage rates, but the latter didn’t have quite the same success.  To be fair, Treasuries ended up losing ground as the day progressed, but even so, they are nearer to their recent lows than mortgage rates.
The mortgage market is coping with several of its own hurdles when it comes to this competition.  The first one has to do with the yield curve (i.e. the different rates of return on Treasury securities of varying time frames).  Rather than bet on outright levels in US Treasuries, traders often bet on the relationship between two levels.  If they see longer-term rates moving closer to shorter-term rates, that’s referred to as “flattening” (because the yield curve would have a flatter shape). …(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