Mortgage Rates Sideways Despite Market Weakness

Posted To: Mortgage Rate Watch

Mortgage rates held mostly flat today, and that's an accomplishment! Lenders set mortgage rates based primarily on the prices of mortgage-backed-securities (MBS), which are part of the bond market, and bonds lost quite a bit of ground today. That would normally push mortgage rates higher, but today it did not. What's up with that? First, understand that it's a fairly tumultuous time in financial markets at the moment. Stocks are off to the worst start of any year--ever--and bond markets have benefited as a result. In fact, it's not unfair to say that rates have been dragged lower against their will because apart from the heavy selling in stocks, there haven't been any other compelling reasons for 2016's stellar mortgage rate trend. One side-effect of being dragged lower against one's will is...(read more)

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