Interest Rate News

7/28/2010 3:16 PM

Well, here we are on "hump day" and mortgage rates are still detached from the price fluctuations of the secondary mortgage market. Instead, the ups and downs of consumer borrowing costs continue to be driven primarily by the capacity constraints of major lenders, the market makers for mortgage rates. One misconception is record low mortg...Read More

Mortgage Rates Still Immune to Rising Benchmark Yields

7/27/2010 6:08 PM

A much better than expected read on New Home Sales helped the stock market post strong gains yesterday. Typically, when stocks advance, their gains come at the expense of interest rates. While benchmark Treasury yields have risen over the last week, mortgage-backed securities have managed to retain their “flight to safety” bid. MBS pric...Read More

What Might Move Mortgage Rates in the Week Ahead?

7/26/2010 3:42 PM

The road got a little bumpy, but last week came to a close with consumer borrowing costs once again priced near record lows. We were expecting the ups and downs of related markets to play a larger role in the behavior of mortgage rates, but in the end, lender loan pricing strategies did not follow the directional guidance offered by mortgage-backed...Read More

Consumer Borrowing Costs Improve, Ignoring MBS Price Declines

7/22/2010 3:48 PM

Mortgage rates broke their two day losing streak yesterday after lenders repriced for the better following sobering comments from the Chairman of the Federal Reserve. In his testimony, Ben Bernanke reiterated that the Fed's economic outlook is “unusually uncertain”. He went on to remind that inflation is trending lower, which is sup...Read More

Mortgage Rates Suffer as Lenders Process Influx of New Applications

7/21/2010 6:05 PM

Mortgage rates extended their losing streak to a whopping TWO (2) days yesterday. Scary! No not really though. Although borrowers who were floating their note rate did see closing costs rise by a few basis points, in the grand scheme of things, the increases were tiny. Gotta put it in perspective... The most aggressive loan pricing we've ever w...Read More

Mortgage Rates Not Following the Directional Guidance of MBS Market

7/20/2010 7:11 PM

After spending the previous week in their own little perfect world, mortgage rates hit the reset button yesterday. Borrowers who were floating their note rate saw closing costs rise by about 0.125% (of the loan amount). This modest increase in cost was however not large enough to push the best par mortgage rates out of the 4.375% to 4.625% range. O...Read More

What Will Move Mortgage Rates in the Week Ahead?

7/19/2010 3:15 PM

First of all I would like to thank AQ for taking over my blog last week while I enjoyed some much needed vacation time. Thanks Adam! Mortgage rates withstood everything related markets could throw their way last week. While several market crosswinds, created by new economic data releases, the beginning of earnings season, and the publication of the...Read More

Mortgage Rates Detach from Related Markets as Lenders Compete for Business

7/16/2010 2:22 PM

Mortgage rates looked like they were doomed to rise from record breaking territory as the week was getting started . Pressure was mounting because stocks were on a four-day winning streak, the "flight to safety" in benchmark Treasuries was fading, and mortgage-backed securities prices were extremely expensive. A flight to safety happens w...Read More

Mortgage Rates: Are We Witnessing a Loan Pricing War?

7/14/2010 3:35 PM

Call me crazy but I think we've been witnessing a lender price war in the primary mortgage market. Yesterday we talked about lenders "buying the market". ( HERE is an explanation of "buying the market"). I originally described this behavior as "mixed", some lenders were better while others were worse, but then I lo...Read More

Mortgage Rates Mixed as Lenders Look to Buy the Market Before Pricing Worsens

7/13/2010 4:11 PM

Mortgage rates generally held steady amidst a shifting investing environment yesterday. I say "generally" because some lenders improved mortgage rates while others moved consumer borrowing costs higher. It may seem odd that two lenders would push mortgage rates in different directions on the same day but it's actually very common. The...Read More