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Benchmark Treasury prices and mortgage-backed security prices rallied yesterday. AQ described the inner dynamics of the trade strategy that led to rate improvements READ MORE. In terms of the headline news catalyst for the rally in bond markets, some fixed income friendly verbiage from Federal Reserve Chairman Ben Bernanke gave us a boost late yesterday morning. Reports from fellow mortgage professionals indicate the par 30 year conventional rate mortgage is holding in the 4.625% to 4.875% range for well qualified consumers. To secure a par interest 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 an estimated one point loan origination/discount/broker fee. ...

Mortgage rates ticked lower yesterday after mortgage backed securities rallied on Tuesday. However, yesterday weakness in fixed income began to snowball and prices of mortgage-backed securities began to deteriorate. Unfortunately that weakness has carried over to today and mortgage rates have given back previous gains....

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...