Mortgages rates are slightly higher again this morning following yesterday’s rally in the stock market.
In case you missed it the equity markets rallied by the largest margin in over 3 months on Wednesday. Mortgage-backed bonds tend to trade inversely with the stock market. When the stock market rallies it pushes bonds prices lower, which in turn causes mortgage rates to rise.
The stock market started the day higher today but has since backed off. In the absence of significant economic data we will be watching the stock market for direction the next 2 days.