May 22nd Mortgage Market Wrap-up 3

Mortgage backed securities (MBS) had one of the worst days I can remember today.  As of now they are down a whopping 103 basis points at 101.72.  That is their lowest level of the day and their appears to be a lot more room to drop.  Notwithstanding a quick correction, It appears that the Mortgage Bankers Association forecast of 4.0% 30 years rates by year end may come sooner than later.  We should all encourage our clients to get out there in the market place before they price themselves out of the market.  A 40 day lock on the 30 year fixed is available at 3.75% right now.