Mortgage Rates Bounce Higher

Mortgage rates saw their biggest bounce higher in more than a week today as domestic bond markets (which dictate rates) followed a much bigger move in European bond markets. The European move can be traced to comments from European Central Bank President Mario Draghi depending on the lender. In a nutshell, his comments sounded like the Fed’s comments in the early days of the “taper tantrum” in the US (a big jump in rates that occurred when the Fed signaled its intention to buy fewer bonds). Translated into simpler terms , big central banks buy lots of bonds. When they do that, prices of those bonds go up and rates come down. Whatever bonds are being bought are those that react most to change…
Mortgage Rates Newsletter – Market Analysis

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