Friday, July 10, 2020 / by Erik Bjorklund
Mortgage rates were already at all-time lows yesterday, and had been holding at those levels for at least 3 business days for the average lender. I normally tell people that mortgage lenders are hesitant to drop rates very aggressively when they're already at all-time lows, and that's always been the case. At least it had been the case before coronavirus.
Even then, the past 3 business days were making a similar case. Rates had bottomed out and the broader bond market (which ultimately drives mortgage rates) looked like it preferred a flat trajectory to one that continued to even deeper all-time lows.
The bonds that specifically underlie the mortgage market had other ideas. So far this week, they've improved much more noticeably than the bond market's poster child the 10yr Treasury yield. 10yr yields aren't even back to last week's best levels. Mortgage bonds, on the other hand have blown right past theirs....(read more) Fidelity Home Group | Mortgage News | Mortgage Rates