Wednesday, November 9, 2011

So have you heard the one about the markets that were highly susceptible to European headlines? There's no punch line. It's not a joke and there's really nothing funny about it.
Case in point, consider the fact that Treasury yields are significantly lower today, having fallen from around 2.07 to 1.96, but Mortgage Rates have barely budged! Reason being, the market-based panic created by concerns about the debt situation in the EU primarily benefits Treasuries. MBS (the bonds that most directly affect mortgage rates) don't have the same safe haven appeal and tend to underperform Treasuries at times like this. Thus, fairly flat mortgage rates while Treasuries rally.
Granted, we can (and often do, over on the MBS Commentary Blog) go into much more detail on this, but that's the gist. And on an even pithier note, the bottom line is that Best-Execution rates are unchanged vs yesterday. Some lenders are a touch higher or lower in terms of closing costs, but only in rare cases would you be looking at a change in a rate quote today.

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