Mortgage backed securities have been trading in a range since mid December. The chart below shows the movement since the end of October. Remember as bond prices go up rates go down. The high end of the range is about 4.75% with 0 points and the low end of the range is about 5.25% and 0 points.
This chart is from Monday. Yesterday was an up day and today is an up day so far, putting us at about the middle of the range. It looks as though we are setting up for another opportunity to lock in. The debate is if it will break through the previous highs and give us mortgage rates at 4.5% and 0 points or lower. I think unless we see a very sharp move towards that upper line it would be wise to lock in as we get close to it again. If you are refinancing, I have the files in the system ready to lock and will be asking you to send in documentation if you have not, to keep the process moving while we are waiting.
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