Posted To: Mortgage Rate Watch
Mortgage rates were modestly lower today, and are now getting back in line with levels not seen in more than 20 months. Only the last 3 days of last week were any better. That said, the amount of improvement in the mortgage market pales in comparison to other parts of the bond market that are normally much more correlated. For instance, 10yr Treasury yields moved 0.08% lower today. Average mortgage rates barely managed half that. In general, the broader bond market is insanely volatile and insanely illiquid right now. lliquidity refers not to an absence of volume, but to small numbers of buyers and sellers interested in transacting at any given price. The buying and selling of bonds (which includes the mortgage-backed securities) moves rates higher and lower. The more buyers and sellers there…(read more)
Via:: Mortgage Rates Move Back toward Long-Term Lows
