Last week’s economic reports provided a mixed bag of results. Investors continue to watch the Fed’s mortgage backed security purchasing trends in order to determine forward mortgage pricing.
How do you stimulate the economy without spending any money? You do the twist and shuffle. The Federal Reserve announced Wednesday that it would engage in a new policy known as “Operation Twist,” consisting of selling shorter-term Treasuries and using the proceeds to buy longer-term government bonds. The Mortgage Bond markets soared today after the surpriseContinue reading “Let’s Twist Again, Like We Did Last Summer”
Daily pricing for conforming A paper loans is determined by mortgage-backed securities, not the Treasury market. Mortgage companies watch the market trade until 10:00 a.m. ET before determining daily price changes. Most mortgage companies/wholesalers watch market activity for over an hour each day before setting daily pricing. Mortgage companies commonly set daily pricing at 10:00Continue reading “Understanding Mortgage Pricing”
Maine Mortgage Rate Update for August 18, 2010 Here are some of the events affecting Maine mortgage rates today: What Mortgage Backed Securities (MBS) Are Doing Today: The price of the FNMA 30-Year 4.0% MBS coupon opened at 102.44 this morning – the same as yesterday’s close. At 9:30 AM, the 4.0% MBS coupon wasContinue reading “Maine Mortgage Rate Update for August 18, 2010”