After a terrible month of October in relation to market performance, the mortgage backed securities market opened strong this first trading day of November after a strong close on the final trading day of October.
It's too soon to be calling this a rally, but this does illustrate support and a floor beneath current trading levels. Based on the events that brought mortgage backed securities to their low price point (low price means higher yield and worse rates) in October it's clear government intervention and headlines is what is moving markets for better or worse.
All things considered we appear to be trading in a range that was previously established before the Fed came out with operation twist. This range is is producing slightly higher rates than expectations, but with the market trading up and a well timed lock could mean securing the terms you are looking for.
This market is all about timing and timing mean being prepared. If this you're looking for a lower rate, but are apprehensive about entering a market as volatile as this one, you simply need to set a point of execution that you stick to and work towards that pricing. If it does not present itself, you've spent some time reviewing your financial position, which is something everyone should do at least once a year anyways.
I remain optimistic that interest rates will remain low and possibly trade even lower although lower rates will require excellent timing.
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