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Mortgage rates improved significantly on Monday and Tuesday, putting an end to a three day losing streak that pushed par home loan quotes up to 4.375%. While this corrective rally helped calm the nerves of nervous float boaters, the uptick in volatility seems to have led many float boaters a shore. Commitment desks report an increase in lock requests over the past 24 hours. ...

Considering how well our technical support levels have held up, I am not ready to sound the ALARM BELLS yet, but we remain in a state of HIGH ALERT. Rates improved today, if push comes to shove, you can lock tomorrow if Retail Sales are better than anticipated and bonds sell off. We think it's worth the risk of floating on a day to day basis, just to see how the market reacts to higher yields. We can't rule out the possibility that the "correction" is done already. ...

Because stocks were already in rally mode when the day began, and because stocks stayed in rally mode for most of the day, the small recovery rally seen in MBS prices following the 10-year Treasury note auction did little to inspire lenders to reprice for the better. Although lender rate sheets are improved vs. rebate yesterday morning, they are slightly worse than the pricing offered by lenders yesterday afternoon, after reprices for the better. ...

After the data was released, stock markets rallied sharply higher and the bond market sold off. After hitting new lows on Tuesday, mortgage rates have risen for the last three days. ...

After weeks of stagnation, stocks finally took their turn in the spotlight today. As money moved out of the bond market and into equities, mortgage-backed security prices fell and lenders were forced to reprice for the worse. Consequently, consumer borrowing costs are higher than they were yesterday afternoon. The damage was not overly dramatic though......

After a better than expected read on 2nd quarter GDP and a not so scary speech from the Federal Reserve Chairman, the 10 year Treasury note yield rose 16.6 basis points and mortgage-backed securities prices fell significantly. This forced lenders to reprice for the worse, which increased mortgage rates. Although consumer borrowing costs rose by about 10 basis points on the week (0.10% of the loan amount), the best 30 year fixed mortgage rates remained in a range between 4.25% and 4.50%. ...

The bond market must have seen this coming because interest rates were already in full on rally mode before the data was released. Although the 10 year Treasury note yield fell a few more basis points after the data flashed, the post release reaction was minimal. In fact, as the day progressed benchmark yields moved higher, which put pressure on mortgage rates to follow. This pressure was soon alleviated though, the 10 year Treasury note rallied back to its best levels of the session this afternoon. Mortgage-backed securities ended up closing near two-week price highs. ...

After reprices, rate sheets are improved vs. offers yesterday. The best execution par interest rate remains in the 4.25% to 4.50% range for well qualified consumers. If you are seeking a 15 year term, you should expect a par rate in the 3.75% to 4.00% range. We still feel rates will rise in the day's ahead. If you are closing within the next 15 days we recommend locking. Longer term closings should also consider locking but floating may pay off if the economic data continues to weaken. The economic calendar is empty tomorrow. If you plan to float it out in the short term, keep an eye on stocks. If they rally, mortgage rates will rise. ...