Monday, March 25, 2019

Mortgage Rates Still Moving Lower After Last Week's Stellar Drop; Yield Curve in Focus; Housing Data Ahead

Mortgage rates continued deeper into long-term lows today as the underlying bond market experiences its most impressive rally of the year. In a rally, bond prices are moving higher and rates are moving lower. This particular rally is bifurcated on several levels. On one level, different maturities of US Treasuries are moving at very different paces . For instance, the 2yr Treasury dropped by .07% today while the 30yr Treasury fell by less than 0.01%. This has to do with investors betting on central banks keeping short-term interest rates low (or cutting them to even lower levels) among other things. On another level, US Treasuries are moving at a very different pace compared to the bonds that underlie mortgages (mortgage-backed-securities or MBS). Part of last week's big news from the Fed spoke

from
http://www.mortgagenewsdaily.com/reports/newsletter/2019/3/25/3844

No comments:

Post a Comment