Posted To: Mortgage Rate WatchMortgage rates managed to remain unchanged today despite the fact that underlying bond markets were stronger. Stronger bond markets are typically associated with lower rates, but in today’s case, markets had some catching up to do. At issue is the timing of yesterday’s weakness. Bond markets had lost ground throughout the day (something that can sometimes result in lenders changing rates in the middle of the day). A few lenders indeed pulled the trigger on such “mid-day price changes,” but the average lender did not. Simply put, that left the average lender with a little bit of weakness to price into today’s rates. The moderate amount of improvement in underlying bond markets was just enough to offset that implied weakness, thus leaving the average lender unchanged. The stakes remain high as…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Michael Ayoub, Author NMLS ID 6631