Builder Confidence Down Big; Mortgage Rates Little-Changed Despite Market Gains
Mortgage rates were fairly flat yet again today. Unlike Friday, today's market movement made a case for a bit of a drop. "Market gains" mean different things when talking about bonds/rates (as opposed to stocks). In today's case, bond markets improved while stocks lost ground. In fact, the pace at which stocks lost ground largely explains bond market gains (investors often seek safe-havens when stocks are panicking, and bond markets can be one of those havens). As money flows into bond markets, bond prices rise and rates fall. Mortgage rates are ultimately determined by mortgage lenders, but they'll usually change rate sheets in the middle of the day if bonds are improving quickly enough. Today's bond market gains were big enough to justify so-called "reprices" among mortgage lenders, but that
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