Lenders Reprice for Worse. Mortgage Rates Move Higher
Posted To: Mortgage Rate Watch
Mortgage rates moved slightly lower yesterday as the interest rate market made modest improvements in the second half of the trading session. This allowed many lenders to reprice for the better at the end of the day. Both stocks and bonds rallied yesterday, this is not a normal occurrence. Typically when one market is rallying, the other suffers. For example if the stock market is moving higher, market participants sell less risky assets, such as benchmark Treasuries and agency mortgage-backed securities, to finance the purchase of higher yielding stocks. This generally results in higher Treasury yields, lower MBS prices, and an uptick in mortgage rates...that wasn’t the case yesterday as both the fixed income sector and the stock market rallied. Lots of economic data hit news wires today...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.