Lots at Stake for Rates

Mortgage rates bounced back ever-so-slightly today, ultimately doing very little to erase the damage done so far this week. The most prevalently-quoted conventional 30yr fixed rate remains 4.125% for top tier scenarios. This marks the second day with contract rates at the highest level of the year with improvements from yesterday seen only in the form of modestly lower closing costs. Lenders primarily rely on the prices of mortgage-backed securities (MBS) in determining where to set rates. MBS are essentially bonds comprised of groups of similar loans. They trade during the day like any other financial instrument and today’s prices would have suggested a better improvement than we saw. Even …
Mortgage Rates Newsletter – Market Analysis

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