Mortgage Rates: More Drifting in Wrong Direction

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Posted To: Mortgage Rate Watch

Home loan borrowing costs inched modestly higher today. Best-Execution mortgage rates didn't budge. As noted on several occasions, the broader bond market has generally moved sideways inside a well-defined, yet wide range this year. There have been periods of volatility, but on the whole, directional trends haven't lasted long without a return to the middle of the recent rage. This is why 4.875% has generally prevailed as the conventional Best-Execution 30-year fixed mortgage rate. The risks associated with this range go back to the concept of "stored energy" in the bond market. Think of it this way : the longer the market stays in limbo, the faster rates will travel when the levee breaks and stored energy is released. That means if you are floating when stored energy is released, you are running...(read more)

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Source: www.mortgagenewsdaily.com

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