By Matthew Graham:
Mortgage rates hit their lowest levels in nearly two weeks today. Conventional 30yr Fixed quotes for the most ideal scenarios (best-execution) are back down around 4.5% for some lenders and remain at 4.625% for many others. The most visible, mainstream explanation for the move is the geopolitical risk surrounding Syria and the effect global markets. Such risk can indeed motivate a “flight to safety” where investor demand tends to shift toward the least-risky assets like US Treasuries and out of more risky assets like stocks. While these two things are indeed happening, the whole story isn’t quite that simple.
First of all, Mortgage Rates aren’t directly tied to US Treasuries, but rather to MBS (Mortgage-Backed-Securities)…
Read the full article at Mortgage News Daily: Mortgage Rates Near Two-Week Lows.