Mortgage Rates Chip Away at Last Week's Losses

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Posted To: Mortgage Rate Watch

Mortgage rates moved lower today , erasing only some of the weakness that dominated the previous week. In other words, rates were significantly higher by the end of last week and today makes a small dent in bringing them back down. The average lender continues to quote conventional 30yr fixed rates of 3.875% on top tier scenarios, with the more aggressive lenders at 3.75% and a few laggards at 4.0%. Mortgage rates are most directly affected by the prices of Mortgage-Backed-Securities (MBS), a type of bond that trades throughout the day like most securities. Like US Treasuries, when the prices rise, the yield (or "rate") falls. Investors leaned toward selling MBS (which pushes rates higher) at the end of last week. That's pretty common heading into a 3-day weekend, as is the fact that investors...(read more)

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Source: http://www.mortgagenewsdaily.com/consumer_rates/518852.aspx

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