We started off the week with "perfect" borrowers still able to get a 30 year fixed in the upper 4's with zero to little points. Ended at around 5%. This uptick was partially due to comments released by the Fed on Wednesday.
Here is a blurb I received from MBSQuoteline:
"Over the last year, the Fed pushed mortgage rates lower by purchasing over $1 trillion in mortgage-backed securities (MBS). Wednesday, the Fed suggested that they should begin selling those MBS "sooner rather than later."
Later that day, the Fed released the detailed minutes from the January 27 Fed meeting. The minutes revealed that "several" Fed officials favored starting the sale of the Fed's MBS portfolio "in the near future." Investors were not expecting that Fed MBS sales would begin any time soon.
Adding to the supply of MBS being sold means that yields would need to move higher to attract buyers. Since mortgage rates are largely determined by MBS yields, mortgage rates rose after the news."
Rates are still low, the tax credit is still here (for now), still a great time to buy. Please email me with any questions.
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