Rates End Lower After Bumpy Start; Next Week’s New FHA Requirements; Mortgage Apps Waned Ahead of Holiday
Mortgage rates ended the day in just slightly stronger territory compared to yesterday's latest levels. This definitely wasn't the case if you looked at rates almost any time before the last few hours of the day. Morning rate sheets were slightly higher as domestic bond markets were under heavy supply pressure from both Treasuries and the Corporate Bond market. Mortgage rates are affected because they're a somewhat interconnected cog in the broad "fixed income" market segment. The simplest way to think about today's event would be to say that a lot of debt was being sold. The US Treasury was selling debt and corporations were selling debt. This means investors were offering cash in exchange for a fixed stream of payments over time. The more debt offered, the more it had to be discounted to
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