I am adding a new section to the blog entitled “Mortgage Market Updates”. I will provide my professional opinion on what will happen with rates and pricing throughout the day, and I will also provide any pertinent economic news articles.
So, here is the first post:
The Mortgage Backed Securities are currently on the upside today by approx. 25 basis points. Currently, we are looking at a mortgage market that hasn’t seen the bond prices this good in quite some time (mid-2005). The 10 Yr Treasury (TNX) is also doing well this morning at 40 basis points up from yesterday’s ending numbers.
There aren’t any relevant economic reports scheduled for release today so we should see the pricing be based solely on the overall stock/bond market.
My suggestion is to float your loans, but be extremely cautious as the day progresses. Keep in mind that we have hit a high this morning for MBS prices, and that my try to correct itself in late day or early tomorrow’s trading.
