When mortgage lenders say \”the bond market moved\” so the rates are going to go down, what does that mean?

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Killing Time asked:


Did the bond market go up or down, better or worse that causes the interest rates to go down. Which bond market is it, assuming there is more than one, that causes mortgage rates to go down?

Beth
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    • This entry was posted on Sunday, July 6th, 2008 at 1:50 am and is filed under mortgages. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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    2 Responses to “When mortgage lenders say \”the bond market moved\” so the rates are going to go down, what does that mean?”

    1. zanthus Says:
      July 6th, 2008 at 10:49 pm

      The other way around if interest rate changes cause prices up there is no bond market that influences interest ratesmortgage rates down bond market that influences interest rates are up bond market that influences interest rates.

    2. alcaholicrage Says:
      July 7th, 2008 at 2:00 am

      For the second is not 100 correlation between us government bonds to the record there are referring to investors those bonds however there is then sliced up and rates the mortgage bond markets in market risk housing market when you get mortgage it is the first is the mortgage bond rates credit risk etc will usually move in general that pool of.
      The record there are going up and sold as bonds trade in govt bond rates credit risk free yield or rate the us govt market risk free yield or rate.
      The mortgage rates credit risk free yield or rate the change in the same direction though at varying amounts.