Browse by Tags

Stocks rallied all day long before closing at the highs of the session. This resulted in another investor exodus from risk averse assets which sent benchmark debt yields higher and drove mortgage-backed security prices lower....and lower...and lower. Lenders repriced for the worse and mortgage borrowing costs took one on the chin. MBS prices are now well-below recently hit record highs. ...

If you have been floating you should have seen your interest rate drop by 0.25% to 0.375% over the past week. We always say "Float at the Price Lows and Lock at the Price Highs". Mortgage rates are once again nearing their best levels of 2010. With that in mind I think anyone who is within 30 days of closing should be getting close to locking in their mortgage rate. There is room to float further but you are now risking losing more than you can gain ...

Mortgage Rates moved higher today.The main event on the day was the second of three US Treasury auctions scheduled for this week. Today's auction offered $25 billion 10 year notes. The 10 year is more influential over mortgage rates than the 3 year Treasury note. Unfortunately, much like the 3 year note auction, this auction was weaker than anticipated, which consequently pushed mortgage rates higher afterwards. Matt and AQ covered the results shortly after the auction. You can see, they issued a reprice for the worse alert immediately. ...

To lock or float, that is the question. In previous months, Treasury yields and mortgage rates have risen prior to bond auctions, however following the completion of each auction cycle, mortgage rates moved lower as MBS prices rebounded. This has been largely a function of a rates range, which has held true since summer. While we are already seeing signs of this dynamic occurring again, other technical factors associated with year end strategies on Wall Street may stall a correction back to the middle of the range, which would allow lenders to offer lower mortgage rates. With that in mind, here are my thoughts: If you are a conservative consumer, I would advise you to locking today. I have not been this uncertain of the direction rates were heading since late spring. If you are a risk taker and can afford to be wrong, floating may pay off if the range's reliability remains intact. I think the best strategy is to ask all the mortgage professionals who contribute to Mortgage News Daily, what they think. Originators, what say you? Are you locking or floating? Do you think rates are going higher or lower? ...

It was a busy day in the rates market yesterday. Although several data releases needed to be digested, the main event was the 30 year bond auction. Recently, while demand for shorter maturity Treasury notes has proven stable in the "post-November 4 FOMC statement" environment, the market has forced yields higher in the long end of the yield curve. Specifically the benchmark 10yr note and the 30 year bond have taken a beating over the past two weeks. Yesterday was the first chance we had to really test market's appetite for longer dated debt investments, which have more of an influence over mortgage rates. Unfortunately, while specific buyers supported the bidding, overall demand was weak compared to previous auctions. Following the release of the auction results, MBS prices plummeted and a few lenders with itchy trigger fingers repriced for the worse. However, soonthereafter the rates market recovered all losses and prices went green on the day! By the end of the day, MBS prices were at their highest levels in quite some time. Most lenders repriced for the better as the gains held until close. To remind readers, as the price of MBS move higher, lenders are able to pass along lower mortgage rates. That momentum has carried over into today as MBS prices are once again slightly higher. ...

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. ...