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DEVIN REPORT: Weekly Update On The Mortgage Markets

Posted by Chris Devin May 5, 2014 01:12 PM

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How Rates Move:

Conventional and Government (FHA and VA) lenders set their rates based on the pricing of Mortgage-Backed Securities (MBS) which are traded in real time, all day in the bond market. This means rates or loan fees (mortgage pricing) moves throughout the day, being affected by a variety of economic or political events. When MBS pricing goes up, mortgage rates or pricing generally goes down. When they fall, mortgage pricing goes up. Tracking these securities real-time is critical. For more information about the rate market, contact me directly. Iím among few mortgage professionals who have access to live trading screens during market hours.

Rates Currently Trending: Improving

Rates have been stable and improving, as reported by Sigma Research. The overall improvement for last week for the MBS market was +46 basis points, which means a slight improvement in mortgage pricing.

This Week's Rate Forecast: Neutral

According to Sigma Research, mortgage pricing is likely to stay well contained, but there will be lots of volatility that could cause pricing to fluctuate through the week.

This Week's Potential Volatility: High

Sigma Research says with few data points this week the MBS market will see volatility due to stock market performance and the Russian/Ukrain issues. Remember, there are always unforeseen events that may arise which are not expected. We'll be keeping an eye on all breaking news related to mortgage pricing.

Bottom Line:

If you are looking for the risks and benefits of locking your interest rate in today or floating your loan rate, you can reach out to me directly and I would be more than happy to go over your specific situation with you. For more information click here.

This blog is not written or edited by Boston.com or the Boston Globe.
The author is solely responsible for the content.

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