bond market: Mortgage Rate Update - 06/27/13 03:36 AM
Extreme volatility in the bond market has been evident since the beginning of May.  Mortgage backed securities have traded lower by over 300 bps since May 1, 2013.  Rates have increased an average of .625% for conventional programs during that time.  Thirty year rates that were achievable below 4% for well qualified borrowers are now in the mid 5s.  This equates to an extra $89 per month on a $250,000 home loan, easily enough to disqualify marginal borrowers with high debt to income ratios.

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