Fig.1 below reflects an “Intra‐Day” perspective for FNMA current coupon yields and the decline of ~0.18% over the past three days, which is in direct conflict to what would have been expected given the looming debt ceiling concerns. Economic fundamentals today outweighed concerns over the debt debate as a weaker-than-expected GDP result was released and some sharp revisions were made to prior growth results. [GDP+1.3% QoQ Annualized]

In short, this drives home an important point: Liquidity risk is just as important as the credit risk associated with investments. It’s potentially even more critical right now given the example of Greece, which is struggling more from its ability to cash flow than its outstanding debt.

The lower yields imply a lower borrowing cost to consumers, which will help improve affordability (though that remains at all time highs) but I caution that pressure is building for a potential whipsaw in rates both from a regulatory and …

Average mortgage rates fell this week, according to the LendingTree Weekly Mortgage Rate Pulse, which tracks the lowest and average mortgage rates offered by lenders on the LendingTree network.

On July 12, average home loan rates offered by LendingTree network lenders were 4.77% (4.94% APR) for 30-year fixed mortgages, 4.03% (4.28% APR) for 15-year fixed mortgages and 3.51% (3.64% APR) for 5/1 adjustable rate mortgages (ARM). Rates for 30 year fixed loans and 5/1 ARMS fell week-over-week while 15 year fixed mortgage rates rose slightly.

On the same day, the lowest mortgage rates offered by lenders on the LendingTree network were 4.25 percent (4.39% APR) for a 30-year fixed mortgage, 3.375 percent (3.61% APR) for a 15-year fixed mortgage and 2.75 percent (3.04% APR) for a 5/1 ARM.

“Mortgage rates have been yo-yoing for several months now,” said Mona Marimow, Senior Vice President of LendingTree.com. “While still hovering near historic lows, the amount …

Average mortgage rates rose slightly after declining for several weeks, according to the LendingTree Weekly Mortgage Rate Pulse, which tracks the lowest and average mortgage rates offered by lenders on the LendingTree network.

On June 21, average home loan rates offered by LendingTree network lenders were 4.70% (4.92% APR) for 30-year fixed mortgages, 3.95% (4.3% APR) for 15-year fixed mortgages and 3.27% (3.42% APR) for 5/1 adjustable rate mortgages (ARM). Rates for both 30-year and 15-year mortgages rose slightly week over week.

On the same day, the lowest mortgage rates offered by lenders on the LendingTree network were 4.375 percent (4.51% APR) for a 30-year fixed mortgage, 3.5 percent (3.74% APR) for a 15-year fixed mortgage and 2.75 percent (3.12% APR) for a 5/1 ARM.

“Over the past several months, we’ve seen a surge of borrowers refinancing to shorten their loan term,” said Chad Smith, senior vice president of mortgage services at …