Mortgage Rate Watch : mortgage rates

Holding Near Six Month Rate Lows. Why Float When Rates Are This Low?

Victor Burek — Mon, 23 Nov 2009 15:48:20 GMT

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. ...(read more)

Mortgage Rates Marginally Lower. Would You Lock or Float?

Victor Burek — Tue, 17 Nov 2009 17:56:04 GMT

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. ...(read more)

Mortgage Rates Move Higher After Bond Auction

Victor Burek — Fri, 09 Oct 2009 16:00:04 GMT

Following a somewhat disappointing 30 year bond auction yesterday, prices of mortgage backed securities plummeted and mortgage rates moved higher as lenders repriced for the worse. Prices of mortgage backed securities are considerably lower today. Many lenders have already repriced for the worse. Reports from fellow mortgage professionals indicate that par mortgage rates are priced between 4.625% to 5.000% for the best qualified consumers. ...(read more)

Mixed Markets Move Mortgage Rates Higher

Victor Burek — Thu, 23 Jul 2009 16:18:34 GMT

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....(read more)

Mortgage Rates Lower as Risk Aversion Takes Over

Victor Burek — Fri, 10 Jul 2009 16:54:00 GMT

Price of "rate sheet influential" mortgage backed securities lost some ground yesterday following tepid demand at the 30 yr bond auction. More than anything this reflects the market consolidating and taking profits from the recent run up in fixed income prices. Unfortunately the selloff in the fixed income market led to most lenders repriced for the worse, pushing mortgage rates higher. ...(read more)

Mortgage Rates Continue to Move Lower as Investor Sentiment Changes

Victor Burek — Wed, 17 Jun 2009 12:38:00 GMT

It seems that market particapants have fallen back in love with fixed income. Mortgage backed securities and treasuries each posted a healthy rally yesterday. MBS improved by another 50 basis points which allowed all lenders to reissue new rate sheets after the gains held through close. Helping to promote fixed income is changing investor sentiment regarding inflation, demand for US debt, and prospects for economic recovery. We did receive 3 pieces of economic data on Tuesday, of which 2 were favorable...(read more)

Mortgage Rates Expected to Move Lower in the Week Ahead

Victor Burek — Mon, 15 Jun 2009 11:15:00 GMT

After two weeks of steadily increasing mortgage rates, from the mid 4's to the mid 5's, volatility in the mortgage market has show signs of stabilization . Last week mortgage rates topped out near 5.625% before a late week MBS market improvement allowed lenders to lower the par 30 year conventional fixed mortgage rate closer to 5.25%. This week begins with MBS trends continuing to indicateg that mortgage borroworing costs should continue to moderate. For new readers and as a reminder for...(read more)

Mortgage Rates Still Moving Higher

Victor Burek — Fri, 05 Jun 2009 17:20:00 GMT

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...(read more)

Mortgage Rates Steady as Market Awaits Direction

Victor Burek — Thu, 04 Jun 2009 17:08:00 GMT

Yesterday mortgage-backed securities had their least volatile day since last week's " Black Wednesday " event. MBS traded in a tight range most of the session, closing slightly higher than the previous day's "going out" marks. With all the volatility recently, I have to say it was nice to have a calm day, especially since we ended up in the green. Some of that volatility has returned to the market today but lender's rate sheets still look very similar to yesterdays...(read more)