Mortgage Rates Under 3% For The First Time (Again)

Posted To: Mortgage Rate Watch

Mortgage rates moved lower this morning as lenders got caught up with recent improvement in the bond market. The bond market is the primary consideration for interest rate levels and investors have remained eager to buy bonds for a variety of reasons–not the least of which being the Federal Reserve leading the way with billions of dollars of bond purchases every day of the week. Stronger buying demand means higher prices and when bond prices rise, rates fall. But in and of themselves, higher bond prices aren’t enough to ensure mortgage lenders will offer lower rates. There is only so much capacity in the mortgage lending system. If lenders drop rates too much, too quickly, it can lead to several negative effects. The most obvious and logical effect would be an overloading of lenders’ operational…(read more)

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