Mortgage charges fall barely regardless of weak bond markets
Mortgage rate Moved a little deep today despite the moderate weakness in the bond market. Bond weaknesses usually lead to higher interest rate fluctuations than anything else is the same. The most common reason for this type of discrepancy can be summed up in one simple word: “timing”.
The bond market is on the move all day. However, mortgage lenders prefer to adjust interest rates only once in the morning but change rates in the morning when the bond market is volatile enough. In the case of yesterday, bonds improved all day but not enough for the average lender to re-evaluate during the day.
Bottom Line: Lenders hadn’t caught up with yesterday’s bond market strength by the time they had to issue today’s first coupon sheet. The shoes are on the other leg, by the way. Bonds lost enough ground this afternoon to suggest that mortgage rates should return to yesterday’s levels. If bonds don’t change much overnight, there will be few lenders left tomorrow morning. It is not surprising that it is rising.
Mortgage rates fall slightly despite weak bond markets
Source link Mortgage rates are falling slightly despite weak bond markets