Mortgage Rates

Mortgage Rates Anthony Hood Equity Investment Capital Office: 949-891-0067 Email: tony@equityinvestmentcapital.com website: www.equityinvestmentcapital.com Mortgage backed securities (MBS) lost -39 basis points from Tuesday's close which caused 30 year fixed rates to move higher and completely wiped out Tuesday's gains. Pending Home Sales disappointed, coming in at -1.3% which was worse than the consensus estimates of about -0.9% to +0.2% range. MBS were down -32BPS prior to the release of this report. And it was not enough off a disappointment to reverse MBS's downward trend. 5YR Treasury Auction results:$35 billion at 1.624% with a Bid To Cover 2.38 vs avg 2.74. This represented a pull back in demand compared to the last 10 auctions and provided a little more downward pressure on MBS. MBS essentially gave up a portion (but not all) of our "fear factor" rally that is due to concern that military action may escalate between Syria and the U.S. But as it is becoming clearer that White House will take more time for tests and confirmation to come in before deciding on which course of punishment (if any) will be dealt out to Syria, some of the temporary "fear factor" demand has pulled back causing your rates to rise.