Mortgage Rates Volatility Continues
Posted 11-19-2010 at 08:10 AM by VictorBurek
The up and down movement we have been seeing all week continued yesterday. Mortgage backed securities did open the trading day higher in price yesterday continuing the late day rally of the prior day. To remind readers, as MBS price moves higher, mortgage rates move lower. The price gains didn’t last long as much stronger than expected data on business conditions in the Philadelphia region and an GM IPO sent the stock market soaring pulling money away from bonds and MBS. However, around noon MBS started to see some bargain buying driving prices back higher. The price gains held through close which did allow most lenders to reprice for the better.
We have no economic data hitting the news wires today.
There was a Xtranormal video making the rounds over the last couple days that attempts to explain what Quantitative Easing is all about. The first link was covered on most news networks while the other one got no air time, but I found it to be a good retort of the first one. My personal opinion is the second one is more accurate, but to be fair and balanced I have posted both links below. These videos by no means give a detailed explanation but I did find them to be entertaining and somewhat informative. The first link is against the idea of QE while the second link is in support. Check them out.
http://www.youtube.com/watch?v=PTUY16CkS-k
http://www.youtube.com/watch?v=RUxBD...eature=related
Lender rate sheets are slightly improved from yesterday morning. The par 30 year conventional rate mortgage remains in the 4.25% to 4.50% range for well qualified consumers. To secure a par interest rate on a conventional mortgage 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. You may elect to pay less in closing costs but you will have to accept a higher rate which is a great option for homeowners not planning on keeping their current home for more than 3 years. Your mortgage professional should be able to determine your breakeven point for closing costs to help you determine the ideal cost/rate structure for your mortgage.
Same advice as yesterday, if you have some time continue to float.
We have no economic data hitting the news wires today.
There was a Xtranormal video making the rounds over the last couple days that attempts to explain what Quantitative Easing is all about. The first link was covered on most news networks while the other one got no air time, but I found it to be a good retort of the first one. My personal opinion is the second one is more accurate, but to be fair and balanced I have posted both links below. These videos by no means give a detailed explanation but I did find them to be entertaining and somewhat informative. The first link is against the idea of QE while the second link is in support. Check them out.
http://www.youtube.com/watch?v=PTUY16CkS-k
http://www.youtube.com/watch?v=RUxBD...eature=related
Lender rate sheets are slightly improved from yesterday morning. The par 30 year conventional rate mortgage remains in the 4.25% to 4.50% range for well qualified consumers. To secure a par interest rate on a conventional mortgage 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. You may elect to pay less in closing costs but you will have to accept a higher rate which is a great option for homeowners not planning on keeping their current home for more than 3 years. Your mortgage professional should be able to determine your breakeven point for closing costs to help you determine the ideal cost/rate structure for your mortgage.
Same advice as yesterday, if you have some time continue to float.
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