Homebuyer Sentiment: At Least It’s Not as Low as It Used To Be; Rates Continue Rising
Mortgage rates were higher again today, extending a 2-day move from the lowest levels since early 2018. The size and pace of the late 2018 improvements introduced the risk of a bounce even before last Friday's key events. But after those events, the correction has been fairly swift. Let's break those last two sentences down, as they contain a lot of implied information that isn't readily accessible without some background. Rates are based on trading in the bond market. Like other markets, when momentum becomes lopsided, there's a risk of a correction. Momentum had arguably become lopsided in favor of lower stocks prices and interest rates heading into last week. That created one aspect of risk for low rates. The other aspect of risk came from events that transpired on Friday. Bond markets
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