Dec 13, 2011

After Starting Out Weaker, Mortgage Rates Finish Strong

According to Mortgage News Daily a strong Treasury auction and an uneventful policy statement from the Federal Reserve paved the way for mortgage rates to improve to their best levels since late September/early October today. Although the improvements haven't translated to a lower Best-Execution rate, the costs involved in obtaining those rates should be slightly lower today than they were last Thursday (12/8/11).

Today's auction of 10yr Treasuries showed extremely high demand and at lower rates than markets had been trading. Although mortgage rates are not based on US Treasuries, the Mortgage-Backed-Securities (MBS) that DO influence rates are similar to Treasuries and tend to trade in the same direction, even if it's by different amounts. 

After spending weeks at an average 4.0% Best-Execution, rates recently dropped to the next rung lower on the ladder at 3.875% late last week. Two days of marginal weakness was beginning to reintroduce 4.0% Best-Ex rates at several lenders. Rates were on a path higher again this morning, and 4.0% continued to proliferate, but the solid improvement this afternoon renders that phenomenon all but non-existent.

For the entire article please visit:
http://www.mortgagenewsdaily.com/consumer_rates/239509.aspx

PrivoCorp is the fastest processor of conventional and FHA mortgages in the country. For more information about our services, please visit http://www.privocorp.com/

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