Mortgage Rates Inch Lower Ahead of Fed

Mortgage rates moved only slightly lower today, belying the amount of positive market movement in the mortgage-backed-securities (MBS) that normally influence lender pricing. Indeed, MBS continue to influence rate sheets more than anything else, but there are always other considerations. These “other considerations” tend not to change very much, day to day, thus leaving MBS as the undisputed king of mortgage rate change motivation. One of the other considerations is the extent to which lenders expect volatility on the near term horizon. If markets might be exceptionally volatile some time soon, lenders might be more conservative with pricing because volatility costs lenders more to deal with…
Mortgage Rates Newsletter – Market Analysis

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