Browse by Tags

It was a quiet trading session for most of the day in financial markets. Stocks rallied early in the day and lenders offered slightly worse mortgage rates vs. Friday. However stocks sold off late in the day which led to another FLIGHT TO SAFETY! Benchmark Treasury yields closed at new one year lows and MBS prices closed at new record highs. Lenders repriced for the better and mortgage rates improved vs. loan pricing on Friday afternoon We do have several lenders offering 4.50% as par. To secure a par rate on a conventional mortgage 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. ...

The well defined range we have used to gauge our lock/float sentiment is being challenged. Since the range proved itself a reliable indicator of demand for debt in the benchmark fixed income market, we have advised consumers to lock when mortgage prices were near the high side of the range and to float when MBS prices were at the the low side of the range. Well...this morning the range broke and prices fell through a key level of support. While we are not in panic mode, our preferred indicator of lock/float strategy is being put to the test. ...