Volatility Could Return Next Week For Mortgage Rates

Posted To: Mortgage Rate Watch

Mortgage rates were unchanged today, making for an anticlimactic end to a week that saw the sharpest rise in months. The lack of movement was all the more interesting considering the bond market's reaction to this morning's GDP data (bonds dictate rates). Even though GDP came in at 4.1%, markets were widely prepared for such strength. Paradoxically, bonds improved, but only moderately. Even so, bond market improvement typically helps rates fall. Today was a bit of an exception for 2 reasons. First, bonds lost ground yesterday afternoon, but not enough for most mortgage lenders to raise rates in the middle of the day. As such, they were left to begin today at a slight disadvantage. Beyond that, the bonds that underlie mortgages specifically didn't improve as much as US Treasuries. Next week...(read more)

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