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Mortgage rates yesterday ended a rally streak that brought consumer borrowing costs back down toward their best levels of 2010. Almost erasing all the losses experienced before and after the Federal Reserve exited the secondary mortgage marktet. After the steady recovery run seen in MBS over the last few days, it isn’t surprising to see a pull back in mortgage loan pricing. ...

After the release of the Treasury debt statement, benchmark yields rose and MBS prices fell. This forced many lenders to reprice for the worse. After the reprices for the worse, lender rate sheets are worse than yesterday. The best par 30 year conventional rate mortgage does remain in the 4.75% to 5.00% range for well qualified consumers though, it will just cost a few more basis points at the closing table. ...

Reports from fellow mortgage professionals indicate higher rates this morning. The par 30 year conventional rate mortgage is in the 5.00% to 5.25% range for well qualified consumers. To secure a par rate you must have a FICO credit score of 740 or higher, a loan to value at 80% or less and pay all closing costs including an estimated one point loan origination/discount/broker fee. ...

WE GOT THOSE MORTGAGE RATE IMPROVEMENTS WE WERE EXPECTING YESTERDAY! Reports from fellow mortgage professionals indicate lender rate sheets to be at their best levels in a month. While the most aggressive lenders were offering 4.75% today, most lenders still have 30 year conventional par mortgage rates in the 4.875% to 5.125% range for well qualified consumers. To secure a par rate you must have a FICO credit score of 740 or higher, a loan to value at 80% or less and pay all closing costs including an estimated one point loan origination/discount/broker fee. While I am comfortable with a float recommendation into next week, I must share with you that we are very defensive of these mortgage rate improvements. We don't see gains being a long lasting trend. With that in mind, if you are closing in the next month, you should be looking to lock in soon. If you are a "fence sitter" or have an Interest Only ARM that is about to adjust, you should be considering a refinance before interest rates start rising. I hope its obvious how defensive we are...floating one day at a time....

Two better than expected economic headlines did not have a positive influence over the bond market. Following the release of PPI data, Treasury yields shot higher and MBS prices fell. Consequently, mortgage rates have risen today. Reports from fellow mortgage professionals indicate the par 30 year conventional rate mortgage has risen to the 4.875% to 5.125% range for well qualified consumers. There are however still a few lenders offering 4.75%. To secure a par interest rate you must have a FICO credit score of 740 or higher, a loan to value at 80% or less and pay all closing costs including an estimated one point loan origination/discount/broker fee. You may elect to pay less in fees but you will have to accept a higher interest rate. This is a good option for consumers who do not plan on keeping their home for a longer than three years. With more inflation data tomorrow and the Fed statement which can offer many surprises...I am locking any loans I have left in the pipeline....

Reports from fellow mortgage professionals indicates that rates are unchanged from yesterday. This keeps the par 30 year conventional rate mortgage in the 4.625% to 4.875% range for well qualified consumers. To secure a par interest rate you must have a FICO credit score of 740 or higher, a loan to value at 80% and pay all closing costs including an estimated one point loan origination/discount/broker fee. If you are seeking to access equity in your home, you should expect either higher closing costs or a higher interest rate. Is everybody that is closing in the next 30 days locked yet? ...

The theme in the secondary mortgage market this week has been volatility. Prices of mortgage backed securities have moved around a wide range as traders attempt to balance their uncertain long term economic outlooks with optimistic short term sentiment in stocks. This ongoing struggle has mostly insulated mortgage rates from movements in related markets, but not totally. Today, mortgage backed securities opened lower in price and most lenders moved mortgage rates higher. ...