Mortgage Rates: Still on a Ledge. Still Defensive

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Posted To: Mortgage Rate Watch

We watched defensively last week as mortgage rates teetered on a ledge. We were searching for an indication that "snowball selling" had been avoided before offering a new directional guidance. No sign was shared by the secondary market but we did manage to back a bit further away from the mortgage rate ledge before heading into the weekend. Snowball selling in the secondary mortgage market forces lenders to reprice their rate sheets for the worse. At first the impact is only higher closing costs, but as the snowballing gains momentum and reprices for the worse get bigger and bigger...the "Best Execution" 30-year fixed mortgage rate spikes higher. Mortgage rates face a condensed calendar of influential events in the week ahead. Planned topics of debate include: inflation, the President's 2012...(read more)

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Source: www.mortgagenewsdaily.com

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