Quick update, mbs are only down a couple ticks from when rate sheets came out but lenders are aggressively repricing for the worse. Some lenders this morning even put out rate sheets much worse than the last rate sheet yesterday. What is happening is pipeline control. Lenders got slammed with locks late yesterday and this morning and they cant handle the volume so they are increasing rates. Some lenders websites are getting so much traffic that they are crashing.
I am also getting many emails and comments regarding rate locks. Many people are asking me if they can pull the loan from the lender that they are locked with now to go with a new lender at the better rates. I am not passing judgement on what anybody does but i want to be open and honest with all readers and tell it like it is. So, please do not be offended. Let me ask you this question. Lets say you locked a loan a week ago and now rates got worse by a .25%. If your lender called you up to say that they are not closing your loan unless you take a higher interest rate since rates are now higher, what would you think and say? When you lock a loan it is called a lock commitment because each party, you and the lender, are making a commitment. You agree to deliver your loan and they agree to fund the loan assuming loan approval. Before you pull a loan from a lender to get maybe a .25% better rate, first consider what i wrote above but then give the lender a call and try a rate renegotiation. Most lenders are offering a rate renegotiation and some are easier than others to accomplish this but it is possible.
As i have been typing this, it has been reported that more lenders are repricing for the worse.