I apologize for taking so long to post today’s mortgage pricing update. However, if you have been watching the overall market, the Mortgage Backed Securities are trading at significantly high levels (up by 53 bps currently) while the 10 Year Treasury is trading at 143 bps over Friday’s end of business figures.
Why is this happening? Well, the Fed came out with an outrageous decision to cut the Funds Rate by .75% which lowers it to 3.5%. However, there are more factors that could have an effect on this. Potentially, the Fed could lower the Futures rate by .5% which would lower the target to 3.0% to try and stimulate the credit market and current economy.
My suggestion is to float your loans for right now unless something drastic happens in overnight trading. Tomorrow morning, make sure that you watch for market correction, and keep your finger on the lock button. I will update you tomorrow as soon as possible.
Just in case there are any immediate updates, make sure that you have signed up for the free e-mail updates!
