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Refi Demand Staying Strong Despite Rising Rates
Monday, February 1, 2021
The current Mortgage Monitor from
Black Knight looks at the recent small increases in mortgage rates and their
potential impact on home sales. The company says that Treasury yields have been
rising with the 10-year up nearly 0.25 percent just since the January 5 Georgia
senatorial runoff. While the spread between it and the 30-year mortgage rates
absorbed part of the increase, mortgages did subsequently rise by about 1/8th
of a point. The January spike wasn't an isolated event, the 10-year yield had
eased up 40 basis points over the last five months of 2020. "Should yields rise
further in coming months, they may begin to impact 30-year rates more directly,
although the Fed's bond buying efforts are expected to insulate the mortgage
market to some degree," the report says.
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