Mortgage rates fell to new record lows last week after the Federal Reserve announced they would reinvest principal paydowns of their agency mortgage-backed security portfolio into U.S. Treasuries. While this announcement did lead benchmark Treasury yields significantly lower, mortgage rates lagged greatly as lenders dealt with an influx of lock requests and new loan applications. Consumers who were floating their loan saw total borrowing costs decline by a few basis points, but the best rates are still between 4.25% and 4.625%. READ MORE ABOUT THE FED'S NEW POLICY INITIATIVE READ MORE ABOUT WHY MORTGAGE RATES LAGGED TREASURIES After an unexpected increase in mortgage rates on Friday, lenders improved consumer borrowing costs this morning, but only marginally. The best execution 30 year…(read more)
What Might Move Mortgage Rates in the Week Ahead?
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