Browse by Tags

Reports from fellow mortgage professionals indicate lender rate sheets to be considerably worse than yesterday. The par 30 year conventional rate mortgage has risen to the 5.00% to 5.25% range for well qualified consumers. Hopefully you have followed my advice on locking… if so, well done. If you didn’t, the damage has been done and lender rate sheets reflect it. I feel at this point it might be worthwhile to float through the Employment Situation Report tomorrow morning. This is a risky strategy as a better than expected non-farm payroll report will cause rates to rise and, as you know, mortgage rates rise faster than the fall. If you want to remove all risk, nothing wrong with locking a 30 year fixed rate mortgage in the low 5’s. ...

Last week was a very nice week for mortgage rates. The economic data was rather mixed, some pointing toward economic growth, while others hinting at a double dip recession. Despite this mixed data, the prices of mortgage backed securities approached the highest levels of the year bringing mortgage rates to 5 month lows. After hitting the highs of the year early on Friday, MBS did come under some selling pressure which lead to many leaders repricing for the worse Friday afternoon as the losses held til close. There is a possibility that we are beginning to see a shift in economic outlook away from the quick V shaped recovery toward a more painful W(double dip) shaped recovery. If this holds true, it could cause stocks to move lower which would benefit MBS and treasuries. ...