NeWS to KnOW

June 9th, 2009 4:02 PM
Mortgage rates continue to tick higher as the market shows a insistent disdain for the risks associated with investing in mortgage-backed securities.  MBS are similar to treasuries in that the price and the yield are inversely related, meaning as price goes lower, yields move higher and vice versa.  So as MBS move lower in price, mortgage rates move higher. Yesterday, in the lunchtime hours MBS made a dramatic move lower in price forcing lenders to reissue worse rate sheets.  This increased the par 30 year conventional rate mortgage by another .125% to .25% in rate.  By day’s end, most lenders were offering par 30 year fixed rate mortgages in the 5.625% to 5.75% range.
Posted by Daniel DiGuglielmo on June 9th, 2009 4:02 PMPost a Comment (0)
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Daniel DiGuglielmo - Your Mortgage Banker
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