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Some movement in mortgage markets, not a lot

By Holden Lewis · Bankrate.com
Tuesday, May 25, 2010
Posted: 4 pm ET

Mortgage bond yields fell a little bit this morning, then recovered. Bond yields influence mortgage rates. As I write this, mortgage bond yields are back to where they were Friday afternoon -- very low.

I track Freddie Mac's required net yields. Typically, you can add about half a percentage point to the Freddie RNY and that's a good indication of what the prevailing mortgage rate is on the 30-year fixed. Freddie's 30-day RNY is 4.4 percent right now, which implies a mortgage rate of around 4.9 percent. Yesterday the 30-day RNY was 4.45 percent.

The numbers indicate that this is a solid time to lock a mortgage rate. If refinancing, consider getting a 15-year fixed.

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