Dead Wrong Headline Of The Day: Mortgage Rates Decline

Each Thursday, Freddie Mac publishes rates based on a survey of lenders across the country from the week before. But rate markets move in real time as mortgage bonds trade throughout each day, and the Freddie Mac rates are long expired when the headlines hit. Here’s a sample of mainstream financial media headlines from today:

– U.S. Mortgage Rates Decline – Bloomberg

– Mortgage Rates Reverse Course – Washington Post

– Mortgage Rates Drop – Marketwatch

It’s true rates were dropping, but yesterday’s post Fed meeting rate spike erased the drop and rates are even to up slightly on the week. It’s especially important to know that the Freddie Mac survey is backward looking in a week like this week when rates rise mid- to late-week, making the Freddie Mac data irrelevant. There’s lots of other fine print consumers also must know about rates they see in the media.

Read this to learn more:

Zillow Mortgage Head Erin Lantz Explains Rates In The Media (TheBasisPoint)

And read this commentary I do with the MortgageNewsDaily MBS team to watch rates daily:

Daily Consumer Mortgage Rate Watch (MortgageNewsDaily)