Mortgage Market 10/7/11
Today has brought about another serious of losses. Small but when piled on top of each other they soon amass to a significance to change rates for the worse again.
This market simply does not follow any real technicals or direction so you really have to be ready to strike when the iron is hot.
A tip I would offer to all I simply meet with all my clients and present the disclosures on what they want and get them to give me the green light for "when rates hit XXX LOCK" Some places don't need the disclosures signed by my better servicers do so I have the prelim work done (when I believe rates have a fighting chance to get back to a certain level) and then pull the trigger and lock for my clients.
FNMA 3.5 has fallen from the "thin air" realm of 103+ at the beginning of this week to barely holding on to 102+.
Currently this is sitting at 102.250 (a far cry from the 103.125 level it was at on Tuesday). The 10Y is fairing the same at -27/32 and its yields are back to almost 2% again!
here is what is driving this but dont expect this train to keep roilling it seems lately these have grown accustomed to rapid ups and downs.
Initial Claims: Actual 401K, prior 391K (consensus 402K)
Continuing Claims: Actual 3700K, prior 3729K (consensus 3725K)
Catch the down and LOCK! it will likely return if a few days to a week but NO guarantees not in this wild market of unpredictability!
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