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 Hedge Hedge Floating Floating
Market Update as of 2:39 pm (EST) - Market trading upward (green)in the 5 to 10 basis point range and some lenders have made mid-day price improves. Here's a market snapshot:
FNMA 5.0 100-26 +0-08
FNMA 5.5 102-16 +0-05
GNMA 5.0 101-02 +0-10
GNMA 5.5 102-23 +0-08
The Bottom Line (9:19am) - Yesterday afternoon, traders joined in profit taking and the market went into red. I'm expecting lenders to price rates with tighter margin today; along with the MBS market trading in the green (positive) anywhere from 5 to 10 bps for the better. If lenders do price tighter and the MBS market rebounds slightly into the green 5 to 10 bps, it could possibly lead to mid-day price improvements with some lenders? Thus, I'm recommending (with some hesitancy), you hedge your locks in the 1 to 20 day lock period and not lock SOME of your loans if the price-improvement comes today. Be very mindful of movements that could possibly have you lock your loans immediately. Just my educated guess!
Checkout the "MBS Price Data" chart in the far right column (underneath Subscription & Contact Links).
Other excellent sites providing insightful market commentary:
- Daily Market Commentary
- Robert Ashby - Mortgage Market Update
- MBS Commentary
- Daily Market Commentary- WesCorp
- Mortgage Rate Commentary - Moving.Com
- Weekly Economic Commentary - Dr. Raymond James
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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