Mortgage rates¬†stayed close to the highest levels in more than 2 years today, even though underlying bond markets left plenty of room for improvement. ¬†Typically, when bond markets improve as much as they did today, rates would be noticeably lower. ¬†The inconsistency has to do with more conservative lender pricing strategies surrounding the holiday season.
Why does this happen? ¬†There can be a variety of reasons. ¬†At the most basic level, keeping rates higher than they otherwise might be is a way to decrease new business volume. ¬†That might not sound like a good thing, but it can be if it keeps customer service optimal during times of decreased staffing levels.¬†...(read more)Forward this article via email:¬†¬†Send a copy of this story to someone you know that may want to read it.[img]http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=689930