Mortgage Rates Remain Unchanged - New Floor Holding

Mortgage Rates remained unchanged even though the Mortgage Back Securities (MBS) started off in the wrong direction this morning after hitting the lowest levels of the year yesterday. Trading in the secondary mortgage markets was far calmer by comparison as yesterday's FOMC (Fed’s) Announcement served as a focal point for volatility.  In the end, MBS stayed near the new floor limit, even though it certainly looked scary there for a few hours.

That said, the movement wasn't enough to nudge 4.375% out of position as the most prevalently quoted conforming 30yr fixed rate for ideal scenarios.  However, I have seen some lenders still wanting to get the 4.5% as their best rate. 

Yesterday, I discussed the interplay between mortgage rates and related markets such as equities (stocks) and emerging markets. In short, relatively panicked selling of those related markets has been helping rates move to their lowest levels of the year. 

In summary, early morning weaknesses in the bond markets led to lenders to be worst in their pricing from yesterday, but as the afternoon progressed with a new supply of treasuries are out of the way as the last auction for the next couple weeks took place today with pretty good results. If you floated overnight, I would continue to float but as always nothing wrong with locking in the recent gains we have enjoyed over the last few days.

If there is anything I can do to help you with your financing, please give me a call at 314-744-7806, or visit my website at www.CallTheMoneyMan.com.