Posted To: Mortgage Rate Watch

Mortgage rates have been spoiled, relatively, by an extraordinarily calm/narrow trading pattern in the bond market. That’s important because the bond market directly affects the day to day changes in mortgage rates. A narrow/calm trading pattern means bond prices aren’t moving. The implication is that mortgage rates wouldn’t need to move much either. That WOULD be the case were it not for the new adverse market fee being phased in by every lender that offers conventional refinances (pretty much all of them). Additionally, the historically low rates forced lenders to change their pricing based on their capacity at times. In other words, there have been a few solid reasons for mortgage rates to move on any given day/week even though the underlying bond market hasn’t suggested much movement since…(read more)

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Source: Mortgage News Daily