Mortgage Rates Plummet Back to Fall 2024 Levels

It may seem like today's bond market movement alone (3/8ths higher in MBS and 0.09% in 10yr yields) doesn't explain the pace of improvement in mortgage rates. For that, we'd need to consider the arcane underpinnings of the mortgage-backed securities (MBS) market.  These are the bond-like instruments that represent large groups of mortgage debt that can be traded among investors.  MBS are broken out into coupons in 0.5% increments.  Only certain mortgage rates are allowed in certain MBS coupons (think of them like buckets). The bucket that had been the most active could hold rates up to 6.625% and it is suddenly losing favor to the next lower bucket which holds rates up to 6.125%. One need not necessarily understand all of that--just the implication that rates ca