Tagged: Treasury

Don’t Freak Out About the Recent Mortgage Rate ‘Spike’

Queue the panic. Mortgage rates have officially spiked and the media is all over it. Yep, the average rate on a 30-year fixed mortgage increased from 2.65% to 2.79% this week, per Freddie Mac’s weekly survey. Freddie Mac Chief Economist Sam Khater noted in the weekly news release that mortgage rates have been under pressure [&hellip

The post Don’t Freak Out About the Recent Mortgage Rate ‘Spike’ first appeared on The Truth About Mortgage.

MBS RECAP: Things Are Getting Ugly For Bonds

Posted To: MBS Commentary

Selling Spree Continues; MBS Underperforming Earlier in the day, Treasuries looked to be selling off at a slower pace versus the past few trading sessions. After sharp spikes in yields, this is the kind of pattern we tend to see before bonds find some support and undergo a friendly correction. But just after the 9:30am NYSE open, Treasury yields hit more new long-term highs, thus re-setting our vigilant search for support. To make matters worse, MBS underperformed (i.e. they had an even worse day than Treasuries) with both UMBS 1.5 and 2.0 coupons losing nearly 3/8ths of a point by the close. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Market Movement Recap 08:34 AM Treasuries were slightly stronger during the first part of the overnight session. After…(read more)

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Mortgage Rates vs. the Stock Market

Mortgage match-ups: “Mortgage rates vs. the stock market.” With all the recent stock market volatility, you may be wondering what effect such events have on mortgage rates. Do mortgage rates go up if stocks go down and vice versa? Or do they move in relative lockstep? Let’s find out! Stocks and Mortgage Rates Follow the [&hellip

The post Mortgage Rates vs. the Stock Market first appeared on The Truth About Mortgage.

What Is Quantitative Tightening?

In the past two years, investors have taken an unusual interest in the Federal Reserve Bank. That’s mostly due to a Fed policy known as ‘quantitative tightening’, or QT. Effectively, QT was the Fed’s attempt to reduce its holdings after … Continue reading →

The post What Is Quantitative Tightening? appeared first on SmartAsset Blog.