Mortgage rates have not fared well the month of May, and today was no different.   Mortgage Backed Securities once again ended the day in the red, giving up 68bp.  What does this mean Mortgage Rates, how does this translate into consumer rates?  Mortgage Backed securities and consumer rates move inversely to one another; when Mortgage Backed Securities lose ground Mortgage Rates increase.  View today’s chart to see this month’s action.
One can hope Mortgage Rates will improve. The recent pull back can be attributed to the positive Economic news.  With positive signs of a economic turnaround Mortgage Rates will be poised to increase in an effort to combat inflation.

image: © theFinancials.com

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