While benchmark interest rates continue to chop around in a contained range, mortgage-backed securities have moved sideways, failing to make much progress in either direction. Although we have experience a few moments of added volatility, tight trading ranges have kept and generally "topped out" MBS prices have kept mortgage rates stable all week, near six month lows.
There are no scheduled data releases today.
Reports from fellow mortgage professionals indicate mortgage rates to be unchanged from yesterday. The par 30 year conventional rate mortgage continues to hold 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. As always, you can elect to pay less in closing costs and secure a higher interest rate or pay additional discount points to buy the rate down further.
As previously stated, MBS prices are hitting a ceiling, unable to make enough progress to push mortgage rates any lower. Therefore, if you are still floating, it is time to take advantage of the aggressive rates lenders are currently offering. Eventhough there is room for benchmark Treasury yields to move lower heading into year end, we do not expect MBS prices to benefit from continued gains as the recent strong performance of mortgages has many investors thinking about profit taking.
Although next week will be holiday shortened in observance of Thanksgiving, we do have some data hitting the wires. Tuesday we get GDP and Consumer Confidence. Wednesday we get Durable Goods Orders, Personal Income and Outlays, Jobless Claims, Consumer Sentiment and New Home Sales. All markets are closed on Thursday and Friday they will close early.
Hope everyone has a wonderful weekend.