Mortgage Rates Little-Helped by Market Turmoil

Mortgage rates did manage to move lower again today. And that move does bring them to the best levels in more than 3 months. But apart from that, the day was a bit of a let-down. Here’s why. Mortgage rates are primarily dictated by the prices of Mortgage-Backed-Securities (MBS), a type of bond that’s similar to US Treasuries in many ways. When economic data is bad or if financial markets are panicking, investors often buy bonds because they offer a safe haven relative to equities (stocks). More buyers result in higher prices and lower rates. It’s not a 1:1 relationship, but over certain time frames, this is why we often see stocks and bond yields falling together. Investors are selling stock…
Mortgage Rates Newsletter – Market Analysis

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