Friday, July 10, 2020 / by Erik Bjorklund
Mortgage rates are directly tied to the bond market. This isn't too much of a surprise considering pretty much anything with an interest rate can be traced back to the bond market. Mortgages are especially relevant though, considering they comprise a very large dollar amount of the debt that's bought and sold in the market every day.
In order to be bought and sold in financial markets, mortgages are grouped together based on shared characteristics, and those groups effectively become bonds. Those bonds then offer an alternative to other bonds like US Treasuries or investment grade corporate bonds....(read more) Fidelity Home Group | Mortgage News | Mortgage Rates