Posts Covering MBS Markets and Mortgage Rates

Mortgage Rates : Rapid Rise Likely In The Coming Months

Mortgage rates are low because of 4 forces, each in place since 2009. Today, those forces fade into history. When they're gone, so will low mortgage rates. Read why mortgage rates are positioned to rise, and rise sharply.

After 5 Weeks Of “No Change”, Mortgage Rates Ready To Rocket Higher

The mortgage market is loaded up with 3 years of negative expectations. And, once those forces reverse, they'll reverse quickly, sending mortgage rates soaring. It's time to execute on that mortgage plan. Rates are poised to rise.

Are Banks Holding Today’s Mortgage Rates Artificially High?

Mortgage rates are ultra-low these days, but they ought to be lower. Mortgage lenders may be holding mortgage rates artificially high.

Mortgage Rates Reach A Milestone; Rise For The 7th Straight Day

Mortgage rates are getting slaughtered this month; rising every day since January ended. It's an historic losing streak for conventional mortgage rates.

It Just So Happens, Mortgage Rates Don’t Rise And Fall Like “They” Say

There's an old adage in the mortgage business: "Rates take the stairs down, and the elevator up." It's supposed to mean that mortgage rates go up faster than they come down. It's practically gospel among the older crowd. Turns out, though, it's completely false.

Be Ready For The Next Dip In Mortgage Rates BEFORE It Happens

Forget about that 4.500 percent, 0-point mortgage rate you passed on last month. It's gone. Today, conforming mortgage rates are bearing down on 6 percent. For a homeowner in Cincinnati with a $300,000, fixed-rate home loan, the impact is huge. Since the unofficial start of summer, rising mortgage rates have added $240 to a monthly mortgage payment.

What Is Mark-To-Market Accounting And What Does It Mean To Mortgage Rates?

If you've never heard of mark-to-market accounting, you're not alone. It's an accounting method so dually complex and arcane that unless you need it in the day-to-day functions of your job, you'd look at its description and be, like, "whatever".

Mortgage Rates And 10-Year Treasury Rates Don’t Move In Lockstep

Mortgage bond markets are signaling a slight return to risk this morning. If you're watching the wrong market indicators, though, you probably didn't get the memo. Looking at the chart above, we see that as of 9:02 AM ET: Mortgage-backed securities are improved by 28 basis points 10-year U.S. treasury...

How Mortgage Rates Are Responding To Lehman Brothers, Merrill Lynch, And AIG

After writing yesterday's blog post, my ThinkPad went blue. Cue the video above. It's a shame because the post went deep on Wall Street's recent troubles and how each piece of bad news actually helps everyday homeowners. When I went to publish, the post vanished. And by that point, markets...

The Disassociation Between Mortgage Rates And The 10-Year Treasury Note

This chart may read like gibberish, so I notated it. It's meant to illustrate that daily mortgage rates are not based on the yield of the 10-Year Treasury Note. Sure, there is a long-term correlation between the two, but "long-term" doesn't do us any good when we're looking to lock...

How To Track Mortgage Rates Using The Stock Market (This Week)

Home buyers and other people in the market for a new mortgage should be thanking the Fed right now. In its post-meeting press release last week, the Federal Open Market Commitee made a few choice statements about the economy that helped mortgage rates fall for the first time in 6...

Why Even “The Gamblers” Are Asking To Lock Mortgage Rates As Early As Possible

If you look at mortgage rates today and compare them to January's numbers, not much has changed: 30-year fixed: Still hovering near 6 percent 7-year ARM: Still lower than 30-year fixed rates 5-year ARM: Still lower than 7-year ARM rates But on a day-to-day basis, the market is not as...

What Will Happen To Mortgage Rates When The U.S. Dollar Strengthens

Broadly, mortgage rates fell in 2007. It's befuddling because there are two major reasons why mortgage rates should have increased in 2007: The U.S. dollar took a precipitous decline against world currencies, devaluing mortgage bonds Inflation ran beyond the top of the Fed's comfort zone for most of the year,...

Foreign Nationals: Today’s Sign That Liquidity May Be Returning To The Market

I am working with a Dublin-based real estate developer, providing Irish real estate investors with mortgages for United States-based properties. A project on which we are currently working has been interesting in context of how the mortgage market is changing. When we started work on this Chicago-based condo building, the...

How Sub-Prime and Alt-A Mortgage Markets Are Behaving Like NFL Draft Picks

Did you see the BNP Paribas press release last week that said it's halting withdrawals from some of its funds? My favorite part is how blunt the first sentence is below (bold added for emphasis): "The complete evaporation of liquidity in certain market segments of the US securitisation market has...

Unless You Watch CNBC During Your Lunch Break, You Missed A Must-Watch Video

Earlier this month, CNBC featured a segment on how sub-prime mortgages work. The shame of it, though, is that it aired at a time when the probable audience was already well-versed on the topic. This would be like holding a seminar on how to throw a baseball to the attendees...

Who Would Have Thought That The Cubs Could Teach Us About Mortgage Bonds?

I just finished up a call with a client in which we discussed the current state of mortgage markets and why mortgage rates have risen so far, so quickly. 30-year fixed mortgage rates are up as much as 0.625% over 30 days. That's ridiculous given the relatively low volatility of...

Why Psychology > Data This Week In Mortgage Rates

For just the second time in two years, the tide in mortgage rates has shifted discernibly. Unlike last time, though, the news is not good for mortgage shoppers. We talk about it a lot: mortgage rates are not picked from thin air. Just like stock prices, they are based on...

2014 Conforming & FHA Loan Limits

Mortgage loan limits for every U.S. county,
as published by Fannie Mae & Freddie Mac, and the FHA.