Author: Editor - Finance Top Stories

Mortgage Rates Struggling to Improve

Mortgage rates had a pretty good day yesterday, but weren’t able to extend that winning streak today–at least not in any significant way.  The unwillingness to improve is part of a phenomenon in the broader bond market (which is responsible for “interest rates” in general).  When certain trading levels in the bond market are repeatedly approached, but not broken, they take on increased significance.  Some investors view such levels as barriers that are less likely to be broken, but the more mainstream approach is to simply view any future break of such a level as an important signal.  …(read more) Forward this article via email:  Send a copy of this story to someone you know that may want to read...

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Mortgage Rates Recover Today; Still Higher This Week

Mortgage rates bounced back today, following a weaker-than-expected report on inflation and a relatively strong 30yr bond auction.  Rising inflation means that bond investors will receive future payments that won’t buy as much as those same dollars would buy today.  As such, when key reports show inflation is in check, bond investors are more willing to buy.  A strong showing at the 30yr Treasury auction signals a similar willingness to buy bonds.  Excess demand means higher bond prices and lower interest rates–all other things being equal. …(read more) Forward this article via email:  Send a copy of this story to someone you know that may want to read...

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Mortgage Rates Back at 4-Year Highs Ahead of Inflation Data

Mortgage rates moved higher today as bond markets braced for impact from several upcoming events.  Bonds dictate rates, and as investor demand for bonds falls, rates rise. Investors were faced with the challenge of bidding at an auction of 10yr Treasury notes today.  In an environment where the Treasury is ramping up issuance in order to pay for fiscal initiatives, buyers want to see lower and lower prices before committing.  Lower prices mean higher yields for investors and higher rates for consumers.  The 10yr auction ended up going fairly well, but only after rates had already moved higher in the morning.  In other words, the auction confirmed that rates needed to rise. …(read more) Forward this article via email:  Send a copy of this story to someone you know that may want to read...

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Mortgage Rates Move Back Up

Mortgage rates are still technically in a sideways holding pattern, but today’s move took them slightly higher inside their recent range.  The average lender is back in line with Friday afternoon’s offerings.  This leaves most borrowers looking at rate quotes that aren’t quite as high as those seen on April 25th (4-year highs), but still .125-.25% higher compared to the end of March.   The unfortunate development today actually occurred in the Treasury market.  Although mortgages are officially dictated by the price of mortgage-backed-securities (MBS), Treasuries do more to set the tone of the overall market for interest rates in the US.    They’re like the trunk of the tree and the mortgage bond market is one of the bigger branches.  In other words, big developments in Treasuries have implications for mortgage rate momentum.  …(read more) Forward this article via email:  Send a copy of this story to someone you know that may want to read...

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Mortgage Rates Still Waiting to Make a Move

Mortgage rates have been exceptionally sideways for nearly 2 weeks now–this after hitting the highest levels in more than 4 years on April 25th.  As always, the run up to long-term highs happened in concert with weakness in the broader bond market.  Rates are based primarily on the prices of mortgage-backed securities (MBS).  In turn, MBS movement is heavily dependent on movement in the broader bond market (where bonds like US Treasuries are top dog, domestically).   All that to say: we’re not really witnessing a mortgage rate phenomenon, but rather a bond market phenomenon. …(read more) Forward this article via email:  Send a copy of this story to someone you know that may want to read...

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