Posted To: Mortgage Rate Watch
Mortgage rates improved nicely overnight. The average lender’s morning rates were very close to the lowest levels ever . This was a distinct possibility based on yesterday afternoon’s bond market movement. Mortgage rates are most directly influenced by mortgage-backed bonds which trade thousands of times a day. It’s not feasible for mortgage lenders to change rate quotes that frequently. Instead, they wait for the market to move by a certain amount before making any changes. By yesterday afternoon, we’d clearly seen enough movement as several lenders had already updated rates for the better. For others, however, it was too late in the day, thus leaving the market improvements to be priced into this morning’s rate sheet offerings. The only risk to that gameplan was that bonds could move enough…(read more)
Source: Mortgage News Daily
