Posted To: Mortgage Rate Watch

Mortgage rates moved lower today after starting the week by jumping noticeably higher yesterday. Today’s gains came courtesy of global growth concerns early in the trading session and a strong 10yr Treasury auction during domestic market hours. This morning’s mortgage rates weren’t too much better than yesterday’s, but several lenders offered mid-day improvements after the Treasury auction. Lenders who held firm would likely improve tomorrow morning unless overnight market drama undoes today’s gains. Why do Treasury auctions matter to mortgage rates? Treasuries and MBS (mortgage-backed securities–the bonds that most directly affect mortgage rates) are both part of the bond market. They correlate quite well for a variety of reasons (not the least of which being that Treasuries are the risk…(read more)

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Source: Mortgage News Daily