wrote an interesting post today on
Here’s a quick excerpt
Mortgage rates continued lower today
after a weaker-than-expected economic report this morning from the
manufacturing sector. Not only does weak economic data put downward
pressure on interest rates in and of itself, it also helps firm up the
consensus on when and how the Fed will begin reducing its asset
purchases. “Sooner and bigger” is worse for rates, but the more weak
data, the more the implication shifts towards “later, less, or both.”
The
data was out before lender rate sheets and markets had largely reacted
to it by then, but MBS (the ‘mortgage-backed-securities’ that most
directly influence mortgage rates) stayed strong all day, indirectly
benefiting from the geopolitical risk that was hurting the stock market
in the afternoon. Some lenders released improved rate sheets throughout
the day, resulting in a 30yr fixed rate moving firmly back down to 4.625% now (best-execution), for the most ideal scenarios. Some lenders are well-priced at 4.5%, but they are the exception.
…(read more)
Forward [...]
Read the rest of this great post here