Posted To: Mortgage Rate Watch

Mortgage loans ultimately “turn into” bonds and those bonds have a certain value to investors. When those values change, so do the rates offered by mortgage lenders. This is basically a hard and fast rule. But it’s completely out the window right now. And that’s a good thing this week. It’s a good thing because bonds had a pretty bad week. 10yr Treasury yields–the most popular bond market benchmark–rose by more than 0.15%, making this the worst week since early August. Bonds take cues from economic data, Fed policy changes, inflation, and fiscal policy changes, to name a few. Economic data is the most consistent source of inspiration, and among economic reports, the big jobs report is by far and away the most important. In general, weaker economic data is good for rates. As such, it was no…(read more)

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Source: Mortgage News Daily