NEW YORK (CNNMoney.com) -- Home mortgage rates were nearly unchanged from the previous week as investors weigh better-than-expected corporate earnings against the record volume of debt the government is selling.
The average 30-year fixed mortgage edged up to 5.56% from 5.55% the week prior, and the 15-year fixed dipped to 4.88% from 4.89%, according to the weekly national survey from Bankrate.com.
Last week, mortgage rates were nearly unchanged, as well. "Mortgage rates remain range-bound as investors sort out uncertainty about the economy, corporate earnings, and the future path of interest rates," the report noted.
Mortgage rates move in tandem with Treasury yields. In particular, the 30-year fixed mortgage rate tracks the benchmark 10-year Treasury yield.
Investors tend to buy up Treasurys, or government debt, in times of economic uncertainty, or when Wall Street is struggling. Uncle Sam's debt is considered an ultra-safe investment. Meanwhile, when Wall Street is on a run, investors dump Treasurys for more attractive yielding investments.
The Treasury market is also being affected by the record volume of debt the government is selling to fund its stimulus efforts. The onslaught of supply pushes debt prices lower, which pulls yields higher. Bond prices and yields move in opposite directions.
In an effort to contain the rise in debt yields - and thereby mortgage rates as well - the government launched a debt buyback program. But analysts have argued that the program is not big enough to make a significant difference in rates.
The average 30-year fixed mortgage edged up to 5.56% from 5.55% the week prior, and the 15-year fixed dipped to 4.88% from 4.89%, according to the weekly national survey from Bankrate.com.
Last week, mortgage rates were nearly unchanged, as well. "Mortgage rates remain range-bound as investors sort out uncertainty about the economy, corporate earnings, and the future path of interest rates," the report noted.
Mortgage rates move in tandem with Treasury yields. In particular, the 30-year fixed mortgage rate tracks the benchmark 10-year Treasury yield.
Investors tend to buy up Treasurys, or government debt, in times of economic uncertainty, or when Wall Street is struggling. Uncle Sam's debt is considered an ultra-safe investment. Meanwhile, when Wall Street is on a run, investors dump Treasurys for more attractive yielding investments.
The Treasury market is also being affected by the record volume of debt the government is selling to fund its stimulus efforts. The onslaught of supply pushes debt prices lower, which pulls yields higher. Bond prices and yields move in opposite directions.
In an effort to contain the rise in debt yields - and thereby mortgage rates as well - the government launched a debt buyback program. But analysts have argued that the program is not big enough to make a significant difference in rates.
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