[quote=scaredyclassic]
Even tho rates are at all time low, i did better w refi in 2013.

Why????[/quote]

there are 2 components to mortgage rates: the benchmark rate (10 year treasury) and the spread over treasuries.

when treasury rates first fell in february/march, spreads between treasuries and MBS widened, so mortgage rates didn’t fall as much. spreads have since shortened, but are still a bit wider than they were in 2013. the spread was compressed in 2013 by the fed buying MBS, and when mortgage rates went down in may, the fed was once again buying MBS.

MBS exhibit negative convexity, so you would expect that as interest rates fall, bond prices would rise at a lower rate than for products with positive convexity, like treasuries.