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Reports from fellow mortgage professionals indicate lender rate sheets to be similar to yesterday afternoon’s. This keeps the par 30 year conventional rate mortgage in the 4.75% to 5.00% range for well qualified consumers. To secure the 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. If you are looking to access home equity, you should expect either a higher interest rate or additional fees. Despite MBS prices holding near the top of the recent range, I will continue to caution floating in the near term. We have some high impacting events approaching, the Treasury Refunding announcement tomorrow morning, the FOMC statement tomorrow afternoon, and the Employment Situation Report on Friday. These events have the potential to move rates considerably. Always remember, rates move higher faster than they move lower. Consumers closing in the near term have more to risk than to gain by floating. ...

After holding steady near the top of the current trading range, mortgage backed securities came under selling pressure yesterday afternoon as stocks rallied off intraday price lows. Several lenders repriced for the worse as MBS losses held into to the close. Despite the price decline of MBS and maringal loss of rebate on rate sheets, par mortgage rates are still holding their recent range between 4.875 and 5.125. To remind readers, the price and yield of MBS and treasuries are inversely related. As the price moves higher, the yield or rate moves lower and vice versa. ...