Mortgage rates have been stuck in a back and forth battle all week. We started the new year with improvements which carried over into Tuesday only to see positive momentum fizzle out yesterday morning after the St. Louis Federal Reserve released a paper titled:INFLATION MAY BE THE NEXT DRAGON TO SLAY. The bond market was not a fan of this commentary as inflation is one of the main enemies of mortgage rates. Benchmark Treasury yields ticked higher and mortgage backed security prices fell after the research hit news wires. Plummeting MBS prices then forced lenders to reprice for the worse. Since that sell off, all of the progress made in the first half of the week has been lost. If you are interested AQ wrote a Plain and Simple explanation of the events that unfolded. READ MORE This was not unexpected...(read more)

Comments are closed.