Mortgage Rates Just Barely Higher; Some Afternoon Improvements

Global stock markets came under strong selling pressure as headlines emerged suggesting Russia could soon invade Ukraine. More often than not, when markets respond to such geopolitical headlines, one of the key ingredients is increased demand for safe-haven assets such as US Treasuries and other ‘bonds.’ The mortgage-backed-securities (MBS) that dictate mortgage rates are almost always moving in the same direction as Treasuries, but by varying degrees. Today, for instance, MBS have indeed moved higher and lower at the same time as Treasuries, but they are still slightly weaker compared to yesterday while Treasuries are slightly stronger.

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