Mortgage Rates Hit New Lows
Posted 11-27-2009 at 08:17 AM by VictorBurek
Mortgage backed securities continued their rally on Wednesday, closing within a quarter point from all time highs. As is typical on days before a holiday, lenders didn’t issue new rate sheets passing along the improvements; however, the rates we saw on Wednesday are pretty much the best rates we have ever seen.
The big news this morning is Dubai which announced they are not going to be able to pay back $60billion in debt. They are asking for a six month reprieve on debt payments. This is causing a flight to quality bid where market investors sell riskier assets and buy the safest asset there is, U.S. Treasury notes. Since treasuries and MBS are both a fixed income investment, they do tend to move in similar direction. Thus, MBS are moving higher this morning.
There are no economic reports being released today and the markets are open for a abbreviated trading day. The stock market will be closing at 1pm eastern followed by the bond market at 2pm.
Early reports from fellow mortgage professionals indicate lender rate sheets to be similar to what we had on Wednesday. This keeps the par 30 year conventional rate mortgage in the 4.50% to 4.75% range for well qualified consumers. To secure a par interest rate you must have a FICO credit score of 740 or higher, a loan to value at 80% or less and pay all closing costs including an estimated one point loan origination/discount/broker fee. There are several lenders offering 4.375% for consumers with exceptionally high FICO scores and loan to values under 60%.
The economic data picks up next week but all eyes will be on the Employment Situation Report which is due out on Friday. Have a great weekend, be back to you on Monday.
The big news this morning is Dubai which announced they are not going to be able to pay back $60billion in debt. They are asking for a six month reprieve on debt payments. This is causing a flight to quality bid where market investors sell riskier assets and buy the safest asset there is, U.S. Treasury notes. Since treasuries and MBS are both a fixed income investment, they do tend to move in similar direction. Thus, MBS are moving higher this morning.
There are no economic reports being released today and the markets are open for a abbreviated trading day. The stock market will be closing at 1pm eastern followed by the bond market at 2pm.
Early reports from fellow mortgage professionals indicate lender rate sheets to be similar to what we had on Wednesday. This keeps the par 30 year conventional rate mortgage in the 4.50% to 4.75% range for well qualified consumers. To secure a par interest rate you must have a FICO credit score of 740 or higher, a loan to value at 80% or less and pay all closing costs including an estimated one point loan origination/discount/broker fee. There are several lenders offering 4.375% for consumers with exceptionally high FICO scores and loan to values under 60%.
The economic data picks up next week but all eyes will be on the Employment Situation Report which is due out on Friday. Have a great weekend, be back to you on Monday.
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