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Last week ended basically where it began with prices of mortgage backed securities moving sideways near record highs and mortgage rates holding steady near six month lows. MBS traded in a very narrowing range as the week progressed which allowed lenders to publish base 30 year conventional mortgage rates in the 4.625% to 4.875% range. While the week ahead is holiday shortened in observance of Thanksgiving, there is still plenty of data to take note of...housing data specifically. With MBS prices near record highs and mortgage rates near six months, I continue to advise clients and readers to lock. ...

Mortgage rates moved considerably higher following another sell off in the mortgage-backed securities market yesterday. Since Monday, current coupon MBS prices have moved 200 basis points lower, consequently pushing the par 30 year fixed mortgage rate from 4.875% to 5.375% (in one week!!!). Prior to “Black Wednesday”, 30 year fixed rate mortgages were at 4.625%. So, in less than 2 weeks, mortgage rates have moved almost a full percentage point higher! Why? The market is betting that our...