Mortgage Rates Slightly Higher Despite Opposite Cue From Markets

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Posted To: Mortgage Rate Watch

Mortgage rates moved slightly higher today on average despite strength in underlying bond markets. Normally, when bond markets improve, rates drop. Recently, however, lenders haven't responded to market movements at the regular pace. This can happen during times of increased volatility--especially if the volatility is generally taking bond markets back and forth within a range. In these cases, lenders assume that the range will continue to hold and thus avoid chasing every little move higher and lower. Such was the case on Friday when lenders kept rates lower than the bond market weakness suggested. But today didn't bring nearly enough strength to offset Friday's damage. Thus we're left with the slightly stronger bond markets coinciding with slightly higher rates. All that having been said...(read more)

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Source: http://www.mortgagenewsdaily.com/consumer_rates/522809.aspx

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