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The relentless mortgage rate rally continued yesterday. Lenders were seen offering the most aggressive loan pricing of our lifetime, again, as stocks extended their losing streak and risk-averse investors piled funds into government guaranteed U.S. Treasuries. High demand for risk free has bonds led mortgage-backed security prices to record prices, allowing lenders to price mortgage rates at the lowest rates reported since the formation of the secondary mortgage market. Lender rate sheets were priced slightly less aggressive today, but total consumer borrowing costs are generally unchanged. The par 30 year conventional rate mortgage remains in the 4.375% to 4.625% range for well qualified consumers. There are a few lenders offering 4.25%, but borrowers would have to pay up to 2 points to obtain that quote. ...

Mortgage rates made modest improvements yesterday thanks to a rally in benchmark Treasuries and mortgage backed securities. The extension of the Monday afternoon rates rally yesterday allowed most lenders to reprice for the better which pushed mortgage borrowing costs lower. Early on today it appeared that mortgage rates would continue to benefit from more rallying in the rates market, but that didn't last long. Since starting the session with gains, MBS prices have fallen rapidly which led to a few lenders repricing for the worse. Two steps forward, two steps back!...

Mortgage rates ticked higher yesterday as prices of mortgage backed securities were pressured lower by a selloff in the long end of the Treasury yield curve. To remind readers, as prices of MBS and Treasuries fall, their yields or rate increase…price and yield have an inverse relationship. No major report or headline caused the moved lower, AQ and MG point out that it was a function of Friday's bond market rally being unwound before today's Treasury auction announcement and the FOMC meeting which was ignited by a "Build America Bond" issuance pricing in California. Their brains are complicated but we make a good team! Whatever the reason was, price losses held into the close and the majority of lenders repriced for the worse. Reports from fellow mortgage professionals indicate that mortgage rates have moved higher this morning. The par 30 year conventional rate mortgage is now 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 one point loan origination/discount/broker fee. You can elect to pay less upfront fees but your interest rate will be higher....

Despite mixed economic reports last week, mortgage rates held near four month lows as prices of mortgage-backed securities approached four month highs. General weakness in stock markets contributed to the rally in fixed income and mortgage rates. As stock sold, Treasuries rallied, MBS moved higher in price, and lenders were able to pass along better mortgage rates...bringing the par 30 year fixed rate mortgage to 4.75% by week’s end. ...