Mortgage Pricing Update: 1/16/2008

The Mortgage Backed Securities have started off stagnant this morning while the same goes for the 10 Year Treasury.  Both are at, or a little less than yesterday’s day-end figures.  This means that we will see similar pricing to yesterday afternoon.

 

However, the economic releases that are scheduled for today are significant.  According to CNN Money, both the Core Consumer Price Index and the Consumer Price Index are anticipated to have a large impact on the mortgage market.  We also have the Capacity Utilization, the Industrial Production, and the Beige Book reports released today.  The later three reports are a little less significant, though.  That being said, they still could have an effect on the market today.

 

My recommendation, if you go by the risk vs. reward theory, is to lock your loans in this morning.  The reason being is that there has been no significant early morning movements, and the high impact reports that are being released.  So, based on that information, there is more risk to floating a loan than reward.  Again, this is just my professional opinion.

 

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Good luck, have fun, and remember to establish a strong relationship with your clients.