Mortgage Pricing Update: 2/11/2008 Updated

You may want to consider locking those loans in to conserve today’s pricing.  As I mentioned earlier, the bonds are being directed by the investors in the stock market, and stocks are starting to make a slight rally from this morning.

Currently the MBS has dropped the gains that it achieved this morning and is even in comparison to Friday’s day end numbers.

Bottom line, if you like today’s pricing, lock in your clients who are closing in 7 days or less (if you haven’t already), and save the headache from a potential to lose on pricing tomorrow.

Mortgage Pricing Update: 2/11/2008

With no economic news reports scheduled for release today, the bond markets are going to be reacting to actions in the stock market.  Currently, stocks aren’t doing so hot, and the MBS is trading for 6 bps over what the ending figure was on Friday.  With regard to the 10 Year Treasury; currently up 38 bps.  This, of course, is good for mortgage pricing this morning, but you most likely won’t see a significant difference (if any) until this afternoon.

The reason that I say that is because the MBS is trading within the 50 and 25 day moving average, and isn’t likely to move much within the day today unless some unexpected news comes out of the woodwork and shakes the stock market.

So, with regard to locking or floating, I would still consider floating until this afternoon.  If stocks begin to make a rally, lock for your clients that you are closing within 7 days.  Just my opinion, but hopefully it helps!  Let me know what your thoughts are.