Mortgage Rates Fall Yet Again

Yesterday was a telling day for us. Yes we lost 23 ticks in secondary which led to many reprices for the worse from all lenders. This sell off was in large part to the rally that the stock market enjoyed. Couple this with the fact that we were sitting at the top of the world on this years highs, and higher than any given point in the last year, investors were inclined to do a little profit taking and our market suffered because of it.

Down 23 ticks off the high is a little discerning for even the thick skinned. Today was going to be a day of reckoning, wondering which way the market would turn. Fortunately we turned back up and the mortgage backed securities market is currently up 17 ticks on the day, nearly erasing yesterdays losses in the early trading hours.

Probably due to consumer sentiment falling in today's reports, these gains reaffirm our position in the MBS and serve as support for the following trading days to come. This point is reaffirmed by the fact that all coupons expect the 5.5 are trading higher. This is a strong sign the the mortgage backed securities market is healthy and thriving.

For this reason I expect rates to stay low despite the volatility. Right now make sure you are prepared to weather large swings and simply choose the right day to lock.