Things have been weird enough for mortgage rates recently that we were forced to add a "Temporary Note on Mortgage Rate Inconsistency" to our daily coverage recently. It will likely return before too long, but with a few edits for clarity. Edits will also need to account for days like today, which offered a prime example of how the inconsistency can be corrected.
There's a decent chance those first 3 sentences are confusing and/or relatively meaningless, so let's change that!
Mortgage rates aren't the only rates out there. They exist in an ecosystem with more established players like US Treasury yields. They move so much like Treasury yields that even very smart people mistakenly believe Treasuries (specifically, the 10yr) dictate mortgage rates. Recently though, mortgage rates have moved in the opposite direction from Treasuries at times, or simply haven't fallen remotely as much as past precedent would suggest....(read more)