Scary News For Mortgage Rates -- This Time The News Comes From China

The dollar is getting trounced today on word from China that the nation is favoring "stronger currencies over weaker ones". This opens the door for China to dump U.S. dollars into the open market, further eroding the dollar's value. So why does this matter to American homeowners? Mortgage rates are based on the price of mortgage bonds. And mortgage bonds are priced in U.S. dollars. So, as the dollar gets weak, the value of mortgage bonds gets weak, too. Lower...

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[Source: The Mortgage Reports Blog]