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It was another volatile day in the markets. Stocks traded in a wide range before eventually closing in positive territory. Interest rates seem to now be ignoring the movements of stocks as benchmark Treasuries rallied this morning after Jobless Claims data and never looked back. While mortgages were slow to keep pace with the Treasury rally, they eventually caught up and most lenders repriced for the better. ...

Mortgage rates looked like they were going to move up today as stocks were indicated to open higher before the lenders published rate sheets. However it wasn't long before stocks lost momentum and a flight to quality led benchmark Treasury yields lower. This helped mortgage-backed security prices rally from early session lows and resulted in multiple lender reprices (one for the better, then one for the worse, then one for the better again). ...

After the release of the Treasury debt statement, benchmark yields rose and MBS prices fell. This forced many lenders to reprice for the worse. After the reprices for the worse, lender rate sheets are worse than yesterday. The best par 30 year conventional rate mortgage does remain in the 4.75% to 5.00% range for well qualified consumers though, it will just cost a few more basis points at the closing table. ...

Just like yesterday, mortgage rates moved higher at the open today...and then even higher later in the day as MBS prices fell further and lenders had to reprice for the worse. MBS pricing took a beating today and so did lender rate sheets! While not completely confirmed, this looks to be the beginnings of all interest rates moving higher....

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. ...