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The Driving Force Behind Mortgage Rates

Posted To: MBS Commentary Somehow, the bond market managed to end the week at 2.084% (10yr yield) which is exactly where it ended last week. In all my years of market-watching, I’ve never seen a sharp weekly (like the one we just had in late May) at the end of a sharp multi-month rally give way to 2 straight weeks of fairly flat trading in bonds.

The size and scale of the real estate market make it an attractive and lucrative sector for many investors.. It’s important to note that as interest rates rise, the cost to obtain a mortgage.

Bonds affect mortgage interest rates because they compete for the same type of investors. They are both attractive to investors who want a fixed and stable return in exchange for low risk. They are both attractive to investors who want a fixed and stable return in exchange for low risk.