Posted To: MBS Commentary

Good morning. 10yr yields are in the 1.2's. All-time lows. We follow MBS and the 10yr Treasury yield (and other rates, when relevant) here. The focus is on the 10yr for THESE REASONS . Today will be "interesting" then, because mortgage rates aren't going to do what the 10yr is suggesting. I've broken this down before in excruciating detail HERE . <—- That's the definitive link on this topic, but I'm going to break it down in different, mostly smaller words. When you get a mortgage, a lender writes a check on your behalf in exchange for you agreeing to pay them back over time. Why would the lender do that? Because they're counting on you paying back more than you borrowed. That's simple right? If they loaned you $250k to buy a house, and you make at…(read more)

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Source: Mortgage News Daily