Refis Pulled Back Last Week; Rates Lower Today Despite Bond Weakness
Mortgage rates moved slightly lower today despite moderate weakness in the bond market. Typically, bond weakness results in rates moving higher , all other things being equal. The most common reason for these sorts of discrepancies can be summed up with one simple word: TIMING. The bond market moves throughout the day. Mortgage lenders, however, prefer to adjust rates only one time each morning, although they will issue mid-day reprices if the bond market is volatile enough. In yesterday's case, bonds improved throughout the day, but not enough for the average lender to issue a mid-day reprice. Even then, lenders don't tend to pass along all of the improvement implied by bond market gains all at once. Bottom line: lenders were still getting caught up with yesterday's bond market strength by
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