Mortgage charges are based mostly on bonds and bonds are buying and selling at their finest ranges since September seventeenth. Of course there are totally different sorts of bonds, so we should always specify that we’re speaking in regards to the bonds which might be particularly tied to mortgages (MBS or mortgage backed securities).
With this in thoughts, it is no shock to see mortgage charges additionally on the lowest ranges since September seventeenth. The similar was true yesterday, however right now marked one other incremental enchancment.
Compared to yesterday, the bond market was really pretty flat. So why did charges enhance? It has to do with timing. Yesterday afternoon noticed an honest rally in bonds (rallies = decrease charges), but it surely was late sufficient within the day that many lenders did not trouble adjusting their mortgage charge choices till this morning. Bottom line: mortgage lenders have been getting caught up with yesterday’s bond market rally.
