Posted To: Mortgage Rate Watch

Mortgage rates stabilized yesterday after moving higher on the first 2 days of the week. They managed to improve modestly today despite some volatility surrounding a scheduled auction of 30yr Treasury bonds. Mortgage rates are based primarily on mortgage-backed-securities or MBS (bonds that tend to correlate with US Treasuries). As such, drama in Treasuries often spills over to mortgage rates. Fortunately, Treasury traders were able to take today’s weak auction results in stride. The bond market weakened temporarily , but quickly returned to the slightly stronger levels from morning hours. This allowed mortgage lenders to hold rate sheets steady at slightly lower levels than yesterday. All that having been said, the average lender is still not back in line with last week’s rates. This depends…(read more)

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Source: Mortgage News Daily