Posted To: Pipeline Press
“Why was the mortgage so depressed? Because it was a loan.” Yes, cutting-edge humor like that is why you read this commentary. No MLO should be depressed, especially when it comes to this rate environment. The yield on the 10-year is very low (1.17 percent this morning). “Real” yields, adjusted for inflation, have been negative for quite some time. At some point yields, and mortgage rates, won’t go any lower, and those that were predicting higher rates will be right, but it will take a while for rates to even go back to where they were when those predictions were originally made. Until then, current market yields certainly support our Federal Reserve’s position not to jump in and taper off purchases: weakness is apparent. More on the Fed’s thoughts…(read more)
Source: Mortgage News Daily
