Interest Rates Worsening

It's been an up and down day today, with this morning posting gains only to have them taken (and then some) this afternoon. All things considered today could have ended worse, then again it definitely could have ended a whole lot better.

We've captured a daily snapshot of our market including the 10 year treasury yield which seems to be the real market factor this trading day. As you can see the 10 year yield and our mortgage backed securities market are inversely related, when treasury yield goes down, the mortgage backed securities market improves, when treasury yield goes up, the MBS market sells off. Sometimes this can be an incredibly frustrating relationship.

Regardless the traders make the rules, and we must live by them. And as fate would have it, today we are looking at higher rates, and the forming of a downtrend. That's right, a downtrend... which I have not illustrated because I am in denial (well, not really). If tomorrow we see more of the same, I will officially slap a line on the graph illustrating the trend in lowering pricing.

Considering this, I have to recommend those looking to close escrow soon should lock their rates immediately. If you have been considering a refinance, you are behind the curve and need to get paperwork rolling as soon as possible if you are looking to capture these low rates.