Mortgage Rates Recover Slightly

Mortgage Rates Recover Slightly

Mortgage rates haven't had a great week so far.  Monday's bank holiday meant that mortgage lenders had to account for an extra day of movement in the bond market (rates are based on bonds).  That movement happened to be toward higher rates.  From there, both Tuesday and Wednesday were bad days for a variety of reasons.  One of the reasons was familiar: economic data was strong on Wednesday and there was a clear correlation between the release of that data and the bond market weakness. The other reason is more esoteric: the corporate bond market.  This refers to bonds issued by corporations to finance operations as opposed to US Treasuries (issued by the government) or mortgage-backed securities (MBS) issued by mortgage lenders to make room on their balance sheets for new business.