Mortgage Rates Remain Steady, But That’s a Victory Today

By Matthew Graham

Posted To: Mortgage Rate Watch

Mortgage rates finally caught their breath today after rising quickly in the second half of last week. Specifically, the average lender managed to avoid getting any worse. Considering the past few business days, that’s a victory. But is it as much of a victory as the underlying bond market suggests? Bonds dictate mortgage rates. They are the raw ingredients that lenders use to determine mortgage quotes. Whereas bonds change in value hundreds to thousands of times a day, lenders only update their published rates once a day. From there, if a certain threshold of bond market movement is met, lenders can issue new rate sheets, but this may happen 1 or 2 times a day at best, outside of extreme circumstances. With all of the above in mind, the bond market suggests rates should be lower today. 10yr…(read more)

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