Really insightful breakdown on MBS pricing dynamics. The point about mortgage rate prices vs rate levels is somthing most borrowers miss completely, and that spread tightening vs Treasuries is a critical piece of context. I've been tracking the disconnect between Fed cuts and mortgage rates for a while, and it's wild how much the market misundersands that relationship. The 340 bps improvement in bond prices year-over-year is huge, dunno if mainstream media is covering that angle at all.
Really insightful breakdown on MBS pricing dynamics. The point about mortgage rate prices vs rate levels is somthing most borrowers miss completely, and that spread tightening vs Treasuries is a critical piece of context. I've been tracking the disconnect between Fed cuts and mortgage rates for a while, and it's wild how much the market misundersands that relationship. The 340 bps improvement in bond prices year-over-year is huge, dunno if mainstream media is covering that angle at all.
Thank you for the thorough comment.
Mainstream media and the Dave Ramsey's of the world still perpetuate myths about how The Fed and what their policy decisions mean for mortgage rates.
Hopefully the posts shared here, and resources like the LendZen Index, can inspire people to make more informed mortgage decisions.