Mortgage Rates Are Finally Falling. Here’s Why They Can Move Fast.
1. Mortgage rates are at their lowest level since 2024 due to Fed cut expectations. 2. The spread between Treasury yields and mortgage bonds has sharply compressed recently. 3. Lower-coupon bonds are gaining preference, improving pricing for in-demand loans. 4. Long-term bond yields are influenced by recession risks and Fed interest rate outlook. 5. Mortgage demand may increase as refinancing opportunities arise from lower rates.