Mortgage Rates Improve

Mortgage backed securites managed to move higher on the day resulting in most lenders repricing for the better.  As MBS and treasury prices move higher, the yield moves lower.  As a mortgage professional, I want MBS prices to move higher which results in lower mortgage rates.  The treasury auction at 1pm was fairly well received which pushed treasury yields lower taking MBS with them.

Most lenders repriced better anywhere from .125 to .25 in discount.  This brings us back to the same rates we had yesterday and the day before.  Par 30 year conventional mortgages remain anywhere from 4.625% to 4.875% depending on the lender.

Tomorrow we get economic data on personal income and outlays and on consumer sentiment.  Both of these reports have the potential to move the MBS market.  I will get back to you tomorrow with the results.