Rates Slightly Higher to Start The Week; Mortgage Market vs Oil; Forbearance Primer
While the industry has come to terms with recent challenges in terms of day-to-day volatility, mortgage rates remain higher than they otherwise would be based on financial markets. In other words there are gold standard benchmarks that serve as the foundation for mortgage rates. Chief among these is the price of mortgage bonds. Up until March 2020, the relationship between rates and mortgage bonds was reliable and boring enough that there was no need to look elsewhere to explain day-to-day rate movement. Since then, however, it's a completely different story. Ingredients that don't usually change in the mortgage rate equation are suddenly hogging the spotlight. This has everything to do with coronavirus, unemployment, and the deluge of forbearances facing mortgage servicers. They've had to
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