Yesterday, prices of mortgage backed securities (MBS) moved lower increasing consumer borrowing costs by .125 to .375 in discount. Most lenders sent out reprices for the worse after bond market's were disappointed by the FOMC statement. First, the wording of the statement indicated a bottoming of the current economic downturn. This created optimism in the stock market and allowed investors to move from fixed income investments to riskier equity positions. Second, the lack of verbiage indicating

Swine Flu outbreaks, unannounced low flying planes in Manhattan, and a revised Viability Plan from General Motors were all reason for global investors to move their money from risky stocks to the safety of treasuries and MBS. This "flight to quality" helped prices of mortgage backed securities (MBS) to move substantially higher. By the end of the day most lenders had republished more competitive rate sheets which resulted in marginally lower mortgage borrowing costs. This morning, although

Mortgage rates continue to hold steady while the broader market searches for new direction. So far this morning, mortgage backed securities (MBS) are trading near the same level of yesterday's close. The price behavior of MBS, like yesterday, is being dictated by the flow of money between benchmark fixed income securities and riskier stocks. Yesterday, MBS once again traded in a tight range, closing slightly higher than the morning opening price marks. We should continue to see par 30 year conventional

Optimism in stock markets put selling pressure on fixed income investments yesterday. Prices of mortgage backed securities (MBS) moved down in price which increased consumer borrowing costs by 0.125 to 0.25 in discount. MBS started out in positive territory early in the morning, following Tim Geithner’s "stock friendly" Congressional TARP testimony, investors began to move their trading positions from fixed income to stocks. By the end of the day MBS coupons could no longer hold their

So far this morning, mortgage backed securities (MBS) are holding steady, slightly higher than closing levels from Friday. This should allow lenders to pass along par 30 year conventional rate mortgages in the 4.625% to 4.875% range for the best qualified consumers. These consumers must have a FICO credit score of 740 or higher, loan to value at 80% or under, not accessing any home equity and be willing to pay all closing costs and one point. For consumers looking to tap into your home equity expect

Yesterday, mortgage backed securities (MBS) remained relatively stable until mid afternoon when they started to sell off which increased consumer borrowing costs by .25 in discount. Most lenders did reprice for the worse. So far this morning, the downward pressure continues as MBS have already moved lower increasing costs by another .125 in discount. We should still continue to see par 30 year conventional rate mortgages in the 4.625% to 4.875% for well qualified consumers. We have been seeing a

Yesterday, mortgage backed securities (MBS) continued their recent upward trend. As MBS moved steadily higher throughout the day consumer borrowing costs inched lower by about .125 in points. So far this morning, MBS are holding steady near yesterday's closing prices. Lenders continue to offer par 4.625% to 4.875% for well qualified consumers. A few aggressive lenders are offering 4.50% for borrowers with high FICOs and low loan to values. Let’s jump into the data released this morning

First of all, I hope everyone had a wonderful Easter weekend with friends and family. My wife and I enjoyed ours, but now back to work. So far this morning, mortgage backed securities (MBS) are holding at unchanged levels. This should allow lenders to pass along par 30 year conventional rate mortgages in the 4.625% to 4.875% for the best qualified consumers. To qualify for the best rates a consumer would have to have a FICO credit score 740 or higher, fully document your income and assets and pay