Cautionary Tale For Mortgage Rates; More Loans, More Delinquencies for Freddie; FHA/VA Updates
Mortgage rates moved higher today, bringing them up to yet another 9-month high. Underlying bond markets ended the week in roughly the same shape as last week, but the mortgage bond market has been volatile over the past 3 days. That volatility makes it more expensive for lenders to guarantee any given rate, thus accounting for the new highs this week. It's very important to note that there were two examples of reasonably positive movement in rates this week (Tue/Thu) and that both of them were quickly eclipsed and replaced with new long-term highs on the following day. It's for this reason that I've continued to advocate a defensive stance despite periodic victories. Such victories are bound to occur in any interest rate environment. We need to see bigger victories and more of them if it's
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