Mortgage Rates on Friday improved, with MBS bouncing off their weekly lows as COVID vaccinations come to market and as Federal Reserve remains committed to the purchase of Mortgage Backed Securities.
One major theme in the 2nd half of 2020 is that mortgage rates have been insulated from market drama–walking a different path than their usual best friend, 10yr Treasury yields. If you ask Treasuries, the big bounce in rates is already well underway. We need to be careful right now with mortgage rates bucking. This divergence is occurring for a variety of reasons, but the important thing to understand is that we’re getting closer to “normal” day by day. Once we get there, mortgage rates will be less willing to defy their Treasury counterparts, which mean Mortgage Rate will move higher, at some point. Question is when?
Bottom Line: I am encouraging client to LOCK as escrows open right now.
SOURCE & AUTHOR |
Keith Murphy Branch Manager – Essex Mortgage NMLS #330827