Mortgage rates stabilise
As suggested in last week’s Mortgage rates after the collapse of bond yields the 30-year Fixed rate Mortgage (FRM) did not follow the further collapse in the yield on th 10-year Treasury – which itself reversed later in the week.
The Freddie Mac weekly survey actually saw an increase in the FRM from 3.29% to 3.37%.
There would appear to be two main reasons for the stabilising of rates: lenders are overwhelmed by refinancing requests and are keeping rates up to slow demand; and the buyers of mortgage-backed securities – the ultimate determinant of rates – are balking at lower rates.
The FRM remains very close to all-time lows and we may have seen the actual bottom, but it is unlikely that rates will rise significantly any time soon.
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