Posted To: Mortgage Rate Watch
The same problem that plagued mortgage rates in recent days where 3.5 MBS coupons were not trading in enough volume to allow lenders the opportunity to push rates below 4.25% is now at risk of causing a similar move in 4.0 MBS, which could make 4.75% the new normal in the primary mortgage market. In the overseas trading session, positive developments in the ongoing European sovereign debt crisis soothed markets and led investors to reallocate funds into stocks. When the U.S. trading day got underway, positive econ data solidified those overnight gains and added a bit more momentum to stocks. We refer to this as "the risk trade being on". We would like to call special attention to the fact that the majority of bond market weakness was priced in overnight, not after U.S. economic data. The run...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Source: www.mortgagenewsdaily.com
No comments:
Post a Comment