Stock Rally Pushes Mortgage Rates Higher
ByPosted To: Mortgage Rate Watch
Mortgage rates started to rise yesterday as stock markets rallied from an eight session low. While only a few lenders repriced for the worse, mortgage-backed securities prices were led lower by an increase in benchmark Treasury yields. This set the stage for lenders to increase mortgage rates this morning. The economic calendar is empty today. When economic data is light, typically the stock market has a larger impact on the bond market, we call this the stock lever. If stocks move higher, it is generally at the expense of the bond market. On the other hand, if stocks move lower the bond market usually benefits. While we had no scheduled economic releases, however, Goldman Sachs reported first quarter results… and they blew away expectations. They reported earnings per share of $5.59…(read more)