Mortgages MAX

Posted To: MBS Commentary
Yesterday we heard banks were buying back MBS hedges. This means lock desks were actively reducing their pipeline coverage (forward hedges) to account for an expected increase in fallout. More fall out = less deliverable loans = added hedging costs unless you replace the production with similar paper before settlement, READ MORE Looking back, this was a hint of strong pricing to come….and it did! Just in case you haven’t seen the headline yet, this is what we told consumers today: ATTENTION: Mortgage Rates Hit New Lows I actually felt the need to apologize to retail L.Os in that post because I know those headlines might make their lives miserable. It is what it is though, the FNCL 4.0 hit a new price high and loan pricing reflects it. On average, rebate was 30.2bps better vs. yesterday. HERE…(read more)
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Original post by Adam Quinones

Posted To: Mortgage Rate Watch
If you’ve been floating your loan or have yet to apply for a refinance because it just didn’t seem worth the hassle, congratulations, mortgage rates hit new lows today. If you’ve refinanced in the last 20 months, there is a darn good chance your refinance option is back in the money, again! The best 30 year fixed mortgage rates have fallen into the 4.125% to 4.375% range for well-qualified consumers. Some lenders will even go as low as 3.875% if the borrower is willing to pay points. Although the 4.125% quote isn’t being offered by the large retail banks (sorry retail L.Os), the smaller mortgage bankers and independent brokers do have access to loan pricing that will allow them to offer new rate lows. So this brings us full circle on the advice we offered consumers almost one month ago today…(read more)
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Original post by Adam Quinones