Mortgage Rates Hold 2-Month Lows

Mortgage rates held their ground today, keeping them near the lowest levels in more than 2 months. There were no major economic reports, but financial markets were highly active nonetheless. In particular, it was the worst day of the year for many major equities indices, including the S&P 500. In fact, it was the worst day of selling since late August. As we’ve seen on several recent occasions, the selling in stock markets proved beneficial to bond markets. When bonds (a broad term that includes mortgage-backed-securities) improve, interest rates fall. Stocks and bonds have an assumed relationship that doesn’t always hold true . The thesis is that investors buy bonds when they sell stock…
Mortgage Rates Newsletter – Market Analysis

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