Mortgage Rates Led Higher By Another Surge in Benchmark Yields

Posted To: Mortgage Rate Watch

Mortgage rates took a beating yesterday as market participants sold their fixed income investments. This drove Treasury yields higher and MBS prices lower. The benchmark 10 year treasury note rose from a yield of 3.66 to 3.85 and the Fannie Mae 4.5 MBS coupon lost 100 basis points in price. Losses started early and continued throughout the day all the way into the close. All lenders repriced for the worse multiple times which increased the par 30 year fixed mortgage rate from the l ows of the year all the way to the highs of the year , proving that rates rise much faster than they fall. The only economic data released this morning was the weekly Jobless Claims report. This data provides three measures on the health of the labor market: 1. Initial Jobless Claims : totals the number of Americans…(read more)

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