What Happened to Rates Last Week?
Mortgage backed securities (MBS) Gained +59 basis points from last Friday to the prior Friday which caused 30 year fixed mortgage rates to move lower.
Mortgage backed securities set a new all-time record on Friday.
Mortgage rates move in the opposite direction of MBS, so mortgage rates set a new record for an all time low.
We had our highest mortgage rates on Monday and our lowest on Friday afternoon.
We had a holiday-shortened week and MBS traded in a fairly narrow range for much of the week, finding support along our 10 day moving average.
But that all changed on Friday on the much weaker than expected Unemployment data. While the Unemployment rate remained unchanged at 8.2%, traders and economists focused on the Non-Farm Payroll report.
The entire United States added just 80K new Non-Farm jobs last month which was dismal; this economic weakness caused a big sell off in the stock markets which made bonds, like mortgage backed securities, very attractive to investors as a safe-haven for their funds. This added demand pushed MBS to a new all-time high.
Brought to you by:
Senior Loan Officer
Office: 800-333-3004 x 3441
Embrace Home Loans
10306 Eaton Place
Fairfax, VA 22030