Mortgage rates¬†moved lower again¬†today as investors remained cautious amid political uncertainty at home and abroad. ¬†Stocks began the day higher but lost ground throughout the day--indirectly helping rates. ¬†That's not to suggest mortgage rates routinely take cues from stocks. ¬†Rather, slumping stocks and falling rates speak to the same underlying trends. ¬†Caution, fear, and the like tend to increase demand for less risky assets like bonds. ¬†As demand for bonds increases (sometimes, at the expense of stocks--like today), rates fall.
In and of itself, today's improvement was mild to moderate. ¬†But taken together with yesterday, the gains were more meaningful as they brought a majority of lenders back to quoting 30yr fixed rates of 4.125% on top tier scenarios. ¬†The transition from 4.25% is still very much "in progress," however. ¬†More than a few lenders continue quoting 4.25%, but with slightly lower upfront costs vs yesterday....(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=703934