Mortgage rates made yet another small move lower, and this time it was enough to lay claim to the title of lowest in over a month. This is more a factor of rates being very close to 1-month lows for the entire week. The improvements came courtesy of weak economic data at home and abroad, as well as the end of this weeks Treasury auctions. While mortgage rates are NOT based on US Treasuries, the two tend to move together for the most part. During weeks where Treasury is conducting auctions, market dynamics can push rates just slightly higher than they otherwise would be. Once the burden of being forced to buy billions of dollars of new debt has passed (primary dealers are forced to bid on Treasuries), bond markets can breathe a slight sigh of relief, and MBS (the mortgage-backed-securities that dictate mortgage rates) can glean some of the benefit. Todays improvements further solidify 4.125% as the most prevalently quoted conforming 30yr fixed rate for flawless scenarios. 4.25% remains a competitive rate for many other scenarios. Borrowers who were quoted the same rates today and yesterday would see the improvements in the form of lower closing costs. The Mortgage News Daily
Posted on: Fri, 15 Aug 2014 03:59:05 +0000
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