Today turned out to be another rather boring trading day for mortgage backed securities. We opened to the plus side but throughout the day we gave back all the gains and closed down just a couple ticks. There was a big turn around in treasuries which put pressure on mbs to move lower. For the week, mortgage rates increased by about .125% to .25% in rate. The best rates of the week where seen on Monday and Tuesday with rates moving slowly higher the rest of the week. The main cause of treasuries moving

Yesterday mortgage backed securities basically moved sideways and to sum up the day in one word, boring. Even though Treasuries sold off, mbs managed to basically stay unchanged the entire day. So far this morning, mbs are higher which should lead lenders to price about .125 to .25 better in discount. This should keep par 30 year fixed rate mortgages anywhere from 4.875 to 5.125%. We did get several pieces of economic data today. First we got the 2 nd revision to 4 th quarter Gross Domestic Product

Yesterday, mortgage backed securities gave back their gains of the prior day and closed down a few ticks which caused some lenders to reprice for the worse. So far this morning we are up on the day being helped out by a sell off in the Dow. The main cause of mbs moving lower yesterday was a big rally in equities which caused investors to sell fixed income investments and move the money into equities. Today, the only economic report to be released is existing home sales. Economists are expecting a

So far this morning, mortgage backed securities are unchanged from where they closed on Friday. For new readers, mortgage rates are based on the buying and selling of mortgage backed securities or mbs by investors. As mbs move higher in price, the yield they pay moves lower. As the yield moves lower, mortgage rates move lower as well. As mbs move lower in price, mortgage rates move higher so we would like to see mbs move higher in price so we can continue to enjoy low mortgage rates. We should see

Yesterday mortgage backed securities traded in a tight range and closed lower by about .125 in discount. When I say it closed down by .125 in discount what that means is a par interest rate yesterday will now cost .125 to secure. So far this morning, mbs are being pressured even lower due to a big selloff in treasuries. Currently we are down another .25 in discount, which should put par interest rates anywhere from 4.75 to 5.125% depending on the lender. This morning we did get the release of several

Mortgage backed securities managed to move slowly higher throughout the day. This has resulted in most lenders repricing for the better by about .20 discount. This means mortgage rates improved slightly on the day. Hopefully, this rally will continue into tomorrow. In related news, President Obama signed the spending/stimulus bill into law today. The most relevant part to our blog will be the first time home buyer tax credit of $8000. To qualify for this tax credit neither spouse most have owned

All US markets are closed today in observance of President’s Day. This week brings us many economic reports that have the potential of moving the markets. It seems lately that economic reports and market reaction have been somewhat disconnected; however, we still need to pay attention to these reports. Tuesday - NY Empire State Index, economists expecting -23.0 after last months -22.2 reading. This report gives investors insight into the strength of the manufacturing segment of our economy

Yesterday, mortgage backed securities lost a little ground. Lenders rate sheets this morning are anywhere from .25 to .50 worse in discount. This will keep par interest rates from 4.625 to 5%. It appears that the main cause of the loss yesterday was a late day rally in the stock market. This can be referred to as the flow of money, investors sell their mbs and treasuries and move the money over to the stock market. Mortgage backed securities, treasuries, stocks, etc.. all compete for the same investor