Friday, July 10, 2020 / by Erik Bjorklund
Mortgage rates were decisively higher today as the bond market lost ground due to surprisingly strong economic data. Mortgage rate movement is mainly a factor of mortgage bond prices. In turn, mortgage bonds tend to move in broadly the same direction as the US Treasury market. That's why so many people think mortgage rates are based on 10yr Treasury yields.
It wouldn't matter either way today as both mortgage bonds and Treasuries lost ground quickly after several economic reports came out much stronger than expected. Taken together, the reports (which still suggest the economy is heavily affected by covid-related shutdowns) point to an economic recovery that may be underway sooner and in healthier fashion than economists expected....(read more) Fidelity Home Group | Mortgage News | Mortgage Rates