Posted by: cfigueira | April 19, 2010

Mortgage Rates Hold Steady as Market Waits for Data and News

Posted To: Mortgage Rate Watch

Mortgage rates ended last week with a healthy “flight to safety” rally that pushed consumer borrowing costs closer to the lowest levels of 2010. This occurred after an unexpected news headline hit the market. Panicked investors were quick to sell their stocks and reallocate funds into risk averse assets like benchmark Treasuries. This allowed some lenders to reprice for the better, but not all. It isn’t uncommon for lenders to be reluctant to pass along price improvements on a Friday and also reminds us that lenders are quick to take away pricing but slow to pass along gains. The news that caught the market off-guard was an announcement that the SEC was filing fraud charges against Goldman Sachs for essentially selling a mortgage investment that was designed to fail. We only…(read more)

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