The rally continued yesterday in the mortgage backed security market resulting in MBS closing at their highest price since May. To remind readers, as the price of MBS move higher, lenders are able to pass along lower mortgage rates. As the price gains held through close, many lenders who were already offering some of the best rates in history, reissued rate sheets lowering consumer borrowing costs even further.

Today is the final day of the week that we receive economic data and there...

The prices of mortgage backed securities managed to move higher yesterday despite considerable gains with stocks. By the close of trading, MBS reached levels in price not seen since May 6th. Most lenders did reissue new rate sheets passing along better pricing. The economic data didn’t support the rally in fixed income as existing home sales posted much higher than expected numbers. The Treasury auction went fairly well with strong demand, but that is basically what was expected and in line with...

Last week ended basically where it began with mortgage backed securities holding near six month lows. During the entire week, MBS traded in a very tight range resulting in mortgage rates holding in the 4.625% to 4.875% range for well qualified consumers. The week ahead is shortened by Thanksgiving on Thursday which will keep all markets closed and we have an early close on Friday.

This morning the economic data starts with a report on the strength of the housing sector from the National...

The trading in the fixed income sector was very slow and boring yesterday. Mortgage backed securities moved in a very tight range which kept mortgage rates unchanged on the day. Unlike Wednesday, the economic data wasn’t the friendliest for the fixed income sector; however, weakness in the stock market helped to keep MBS near the top of the trading range which has kept rates near six month lows.

The Treasury Department announced yesterday a new supply of 2 year, 5 year and 7 year...

Yesterday’s trading action in the mortgage backed securities market was pretty similar to what we had the day before. Early morning weakness, followed by a move higher mid day only to move back lower by the close. The economic data yesterday was fairly positive for the fixed income sector which helped spark the move higher but profit takers stepped in which kept mortgage rates unchanged on the day. With the year end fast approaching, market participants will look to cash in profits at any opportunity...