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Mortgage rates fell, but not as much as 30-year Treasury yields
Mortgage rates declined on Wednesday, but lenders moved less than 30-year Treasuries partly because typical mortgage-backed duration is about 5 to 7 years.
Mortgage rates fell on Wednesday, but the drop lagged the bigger move in 30-year Treasuries, according to Mortgage News Daily.
The outlet attributed the decline in mortgage rates to a mix of lower oil prices and an announcement that changes will be made to Treasury's bond buyback program.
Mortgage News Daily also said the relationship between 30-year bond moves and mortgage rates is not one-for-one because the mortgage-backed bonds underlying many 30-year fixed rates typically last about 5 to 7 years on average, meaning duration drives valuation more than the 30-year label.
The result, the outlet said, was that mortgage rates moved down, but not as much as 30-year Treasuries, which it described as falling sharply that day.