Mortgages MAX

Posted To: Mortgage Rate Watch
Mortgage rates opened just above record lows yesterday. Many lenders were seen offering mortgage rates below the 4.25% threshold. However as the day progressed, mortgage-backed securities (MBS) prices were pressured lower and lenders had to reprice for the worse, which pushed consumer closing costs higher by about 0.25% (of the loan amount) on the day. The economic data calendar was empty yesterday but we received several reports today. First out was the final revision to second quarter Gross Domestic Product. GDP is the broadest measure of total economic activity. It reports on the output of every economic sector. It’s basically our economic report card. A rapidly growing economy can lead to price inflation, one of the main enemies of low rates. The bond market prefers stable growth while…(read more)
Forward this article via email:  Send a copy of this story to someone you know that may want to [...]

Original post by Victor Burek

Posted To: MBS Commentary
Stop the presses! After touching 4.5 month highs following the release of Chicago PMI data at 9:45, profit taking has led stocks back into the red. S&Ps are currently -8.25 at 1132.75. This is a 20 point turn around. Chop chop…. As liquidity dried up and the floor fell from underneath stocks, the rates market caught a bid. TSYs and MBS turned for the better at the session price lows/spread wides. While trading activity isn’t exactly robust, real money was reportedly buying on the lows, lock desks were rebooting hedges, and fast money showed some interest at the yield spread wides. But overall, flows are not heavy in MBS space and benchmark TSYs are aiding our cause. The 10yr note is -0-09 at 100-25+ yielding 2.533% (+3.2bps on the day). 2s/10s are still 3bps steeper at 209 wide. 10s are…(read more)
Forward this article via email:  Send a copy [...]

Original post by Adam Quinones