Yes, Mortgage Rates are Lower and 10yr Yields are Higher Today

Two days ago, I wrote an article entitled “No, Mortgage Rates Aren’t Based on 10yr Treasury Yields.”  It’s worth a read if you’re not already up to speed on why that’s a true statement.  It also paves the way to understand why today’s headline can be true (and in fact, it is).  Mortgage rates moved LOWER today.  Granted, it wasn’t a huge move lower, but it’s notable against the backdrop of 10yr Treasury yields that were more than 0.06% higher at one point.
Much of the discussion regarding mortgages vs Treasuries centers on MBS (the mortgage-backed securities that serve as the base ingredient for mortgage rates) and the fact that they don’t always move in the same direction as Treasuries.  But that’s only part of today’s divergence.  nt costs into consideration….(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