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Improving the Sales Approach and Marketing Techniques for All Loan Officers

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Mortgage Pricing Update: 2/12/2008

Posted by arscherer on February 12, 2008

I am hoping that you all kept up with the updates yesterday that I made throughout the day.  I altered the float suggestion to a lock for clients that you are planning on closing within 7 days.  Today, the MBS is 38 bps down from yesterday which is going to alter mortgage pricing for the worse.  The 10 Year is also down for today (approx. 75 bps).  This is due to the stock market rebound today, and we could potentially see even worse pricing for the afternoon since lenders have an itchy trigger finger with the economic stimulus package being signed tomorrow.

On a grander scale, Warren Buffett’s company has made an offer to reinsure $800 billion that are currently backed by MBIA, Ambac, and FGIC.  This could be a cause of the stock market rebound.

So, here’s where it starts to get tricky for us out there; do we lock now and hope that the market doesn’t rebound so we lose out on pricing, or do we float in hopes that the MBS will rebound in the near future.  Given the 50 day and 25 day moving average, I am going to say that it is wise to lock in your clients that you are planning on closing within that 7 day period.  After that, however, I would definitely think about floating because there is a great chance of the MBS to get better.


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Mortgage Pricing Update: 2/11/2008 Updated

Posted by arscherer on February 11, 2008

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.

Posted in Business, Economy, Finance, Mortgage, Real Estate, tips, training | Tagged: , , , , , , , , , , | Leave a Comment »