Mortgage backed securities (MBS) closed up  28 basis points today at 103.62 setting a new record yet again today.  The variancee in the closing level since Friday is due to the fact that we did switch over to the 3.0% coupon today.  If you remember Wall Street typically adds about 75 basis points to the pricing of bonds when they are securitized.  That represents their profit.  Therefore the 3.50% coupon was no longer reflective of market pricing.  The 30 year remained at 3.5% today.

 
Posted by Jeff Jensen on 07/16/2012 02:50 PM   Comments (1)   Mortgage in the ActiveRain Channel  
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1 Comments on July 16th Mortgage Market Wrap-up 2

JUL
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870,787 Points Outside Blog Called Shot Master

Jeff - Thank you for sharing detailed quality information on July 16th mortgage market wrap-up 2.
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