Volatility has returned to the mortgage market in grand fashion this week with many lenders quoting rates that are as much as a quarter of a point higher than they were last week. That means if you were looking at something in the 2.75% neighborhood on Friday, it could be 3.0% today. What gives?
The upward pressure is nothing new, really. It has existed in the broader bond market since August, but only recently began spilling over to the mortgage market. We’ve been discussing the increased risks of such a spillover in the event of a sharper bond market move and yesterday brought just such a move. Today was much more docile by comparison, but it didn’t do anything heroic to push back against yesterday’s weakness.
Still, there could be some promise of stability in the fact that the bond market was even able to hold steady today. Reason being: economic data and other events clearly suggested another bad day for bonds. …(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
Yes, Mortgage Rates are MUCH Higher This Week
Published in bond markets, interest rates and mortgage rates
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