A New Post By The Mortgage Cicerone.
A Guide for Mortgage Professionals.
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If a family member asked my advice and they were scheduled to close on a mortgage purchase or refinance in the time periods indicated below, I would recommend...
1-7 Days 8-20 Days 21-45 Days 46 Days Plus Locking Hedge Floating Floating
Market Update as of 2:17 pm (EST) - As advised, I hope you locked early this morning. As you can see, the market losses have even exceeded the minimum 13 to 17 bps predicted this AM. Subsequently, lenders are making mid-day price changes for the worse. I also recommend taking a hedging strategy on loans closing in the 8-20 day range.
30 Year MBS Coupons
FNMA 5.0 100-21 -0-27
FNMA 5.5 102-14 -0-19
GNMA 5.0 100-28 -0-26
GNMA 5.5 102-22 -0-16
The Bottom Line (8:26 am) - Yesterday afternoon, after five straight days of rallying in the MBS market,traders started selling and participated in profit taking. Hopefully the readers followed my advice at 3:24 pm (EST) yesterday before the tradeoff reversed rates for the worse. My guess is the MBS profit taking will continue today and go at least 13 to 17 basis points into the red.
Checkout the "MBS Price Data" chart in the far right column (underneath Subscription & Contact Links).
Other excellent sites providing insightful market commentary:
Important Note: These recommendations to lock or float constitute solely my opinion and are not represented nor should be taken as a guarantee of mortgage rate direction.
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