Mortgage Rates Remain Under Pressure; More Volatility Ahead

Mortgage rates moved convincingly higher for the second straight day, bringing them back near the highest levels of 2015. Rates are dictated primarily by bond market trading, and traders are currently in a defensive stance ahead of the week’s most significant events beginning tomorrow. “Defensive” in this context, means more willing to sell than to buy. Increased selling pressure causes prices to fall for the mortgage-backed securities that lenders rely on to generate rate sheets. The lower those prices, the worse rate sheets look for consumers. Over the past two days, that defensiveness in the bond market has been exacerbated by some of the housekeeping-type trading associated with big corp…
Mortgage Rates Newsletter – Market Analysis

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