[ad_1]
The week started with a significant increase in mortgage rates from the previous week’s low. Today’s momentum continued in the same direction, but with less urgency. The average lender for a delinquent increased 0.06% in line with the 30-year fixed scenario.
Mortgage rates are driven by the constantly changing prices of mortgage-backed securities (MBS), which are essentially bonds that rely on mortgages as collateral. The bond market was doing very well in the recent banking panic as investors looked for safe havens to park cash. MBS and Treasuries both fit that bill.
But as the panic subsided, investors pulled cash out of the bond market. This puts downward pressure on bond prices and upward pressure on yields/rates. It remains the primary source of input for rates, and one that is beginning to stabilise. If banking concerns continue to ease, there is more room for further accommodation in rates.
[ad_2]
Source link
