Mortgage rates continued lower today, extending a recovery from recent 2-yr highs that peaked last Monday. Lenders got on board with said recovery at varying rates with some not showing signs of improvement until last Wednesday. Since then, there's been a broad move lower, shaving off at least a quarter of a point in rate for most lenders. This brings the 30yr Fixed best-execution to 4.375% for the first time in over 2 weeks.
There are several ways that the recent spike in rates has been characterized, with the most prevalent being that rates somehow "over-reacted" to the inbound information from Fed speakers and the economy. While this is understandable, it's nothing to do with reality. Quite simply, rates markets were as temporarily "broken" as they had been in quite some time. The securities that underlie mortgage markets and even broader rates markets were not trading hands in an orderly or efficient way during the worst of it. It was a chaotic time for markets with traders 'preparing for the worst.'
No comments:
Post a Comment