Rates Moving Back Into Same Old Range; NY Area Bank Accused of Redlining; Markets Confused Again?
Mortgage rates rose moderately today as investors moved back into riskier assets this morning. Stock markets made solid gains in premarket trading and global interest rates moved higher (the two are frequently correlated). In fact, stock prices and bond yields (aka "rates") have been moving together more than normal recently--a sign that investors are uncertain about the the direction and size of the next significant movement. The correlation broke down in the afternoon as stocks sank but rates remained elevated (this isn't too much of a surprise on a Friday afternoon as it connotes investors closing out trading positions ahead of the weekend). Given the fact that all of the day's weakness was in place by the time MBS (the mortgage-backed-securities that dictate lenders' rates) began trading
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