Support to Start 2012

This morning was a little unnerving, watching the mortgage backed securities market. The stock market had opened strongly and treasuries were not trading well, selling off leading to higher yields and little support to the MBS.

It looked as though a down day was inevitable. Then a rally ensued and the MBS market slowly but surely climbed out of the ditch it had found itself in to stat 2012.

The day ended zero sum, an incredible accomplishment considering it was done in the face of an equities rally, while treasuries sold off.

This is a strong sign of support for the MBS markets and future interest rates. It would seem the low rate environment is here to stay, at least for the time being.

Those that have been sitting on the fence need to look at this rally as a beacon aimed straight at them. While 4.000 is available at no cost to most qualified borrowers, we may see a day or two where 3.875 becomes available. These are the rate sheets worth paying serious attention to.

While I do not think we will see the mortgage backed securities market rally to a new high forcing rates down onto a new lower plateau, I do think the current range has serious support and will offer these low rates for sometime.

Timing your rate lock should be your primary concern, wait for a bullish day and don't hesitate to lock when you see the terms you've been waiting for.