Monday, March 7, 2011

Mortgage Rates: Best Execution Back to 4.875%

Hot news from AZ Home Help:

Posted To: Mortgage Rate Watch

Mortgage rates dodged a bullet last Friday following the release of the February Employment Situation Report . Although headlines indicated improving conditions in the labor market, stocks still sold off and a flight to safety helped rally the bond market and consumer borrowing costs. A "flight to safety" happens when investors are nervous about owning risky assets like stocks, but do not want to miss out on earning a return on their funds, so they allocate their money into risk-free government guaranteed U.S Treasury debt to provide a safe-haven AND an investment return. As benchmark Treasury yields fall on "flight to safety" buyer demand, prices of mortgage-backed securities move higher in unison. This allows lenders to reprice their rate sheets for the better and gives originators an opportunity...(read more)

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Source: www.mortgagenewsdaily.com

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