Mortgage rates improved nicely overnight. The average lender's morning rates were very close to the lowest levels ever. This was a distinct possibility based on yesterday afternoon's bond market movement.
Mortgage rates are most directly influenced by mortgage-backed bonds which trade thousands of times a day. It's not feasible for mortgage lenders to change rate quotes that frequently. Instead, they wait for the market to move by a certain amount before making any changes. By yesterday afternoon, we'd clearly seen enough movement as several lenders had already updated rates for the better....(read more)