Stocks Fall Under 10,000 Rates Improve

As the stock market falls to the lowest point in 2010, and as of this writing stands below 10,000, the long term markets as usual are the beneficiary. Currently the mortgage backed securities market is up 7 ticks, leading us towards better pricing yet again. Currently conforming interest rates are around 4.375%, which is as low as they have been without paying an up front cost for the rate. Jumbo conforming products are around 4.75%.

Considering what is driving these gains it appears as though these rates will remain available for the next couple of days. Gosh it was hard writing that last sentence.... I believe this, but must instill upon you how quickly these rates can and will disappear when the market shifts. To put things in perspective, a single firesale could raise offered rates as much as a half point. With that said considering the trend, if you are 30 days outside of closing and you are a bit of a risk taker, floating into a 15 day lock may pay off. Should the mortgage backed securities market continue to post gains rates will continue to improve, moving lower.


In other news there is a treasury auction today, it will be interesting to see how it is received. My expectations are high, there should be a strong indirect (foreign) bid, which will add further appeal to our market.