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Nov 14

Rate Watch November 14, 2012

 

Bonds Down a Little Rates Up Slightly

 

Not a big movement, but Mortgage Backed Securities are trading a little lower this morning, down about another 5/32’s. Interest rates are up very slightly, not enough to change the rate.  Lenders look at yield and borrowers look at rate, the yield is only slightly less than yesterday so not enough change to bump the rate an 1/8 of a point. 

 

In fact, considering how small the change is in yield supports something I have thought for the last couple of weeks, interest rates are not as low as they should be.  Yes, I know they are at an all-time low!  But considering how much the price of bonds have increased recently I would have expected the rates would have improved more than they have.

 

So this little movement today and yesterday didn’t change anything, there was already a little fat imbedded in the rate or so it appears to me.   

 

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