Decent Day For Rates, But We Need More Than One

Posted To: Mortgage Rate Watch

Mortgage rates improved modestly today, bringing them back in line with Wednesday afternoon's best levels. After underlying bond markets overcame volatility associated with a monetary policy announcement from the European Central Bank, they were further helped by a strong 7yr Treasury auction in the afternoon. While US Treasuries don't directly dictate mortgage rates, there's a good amount of correlation between the two. Strong demand for longer-term Treasuries bespeaks similarly strong demand for the bonds that underlie mortgages. The problem we're facing is that while rates have been able to improve on individual days here and there over the past few weeks, they haven't been able to string together 2 solid days. At minimum, we'd need to see that before getting our hopes up about the longer...(read more)

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