Pre-Qualify Your Loan Officer By Asking: "Where Do Mortgage Rates Come From?"

This snapshot comes from my Mortgage Market Guide dashboard. It perfectly illustrates an important point I make over and over again. If you want to know in which direction mortgage rates are moving, watch the price of mortgage bonds, not the 10-year treasury note. Mortgage rates are "made" from the price of mortgage bonds using a mathematical bond formula. This is fact. And by exclusion, this also means that mortgage rates do not come from the price of the 10-year...