Mortgage rates took a step back yesterday as the stock market recovered from early morning losses. All lenders repriced for the worse yesterday increasing consumer borrowing costs by a .25 in discount.

We have no data today, so look for the stock market to impact the fixed income sector. Stocks opened today in full rally mode. If they continue to move higher, the fixed income sector will continue to sell off which will increase consumer borrowing costs.

Lender rate...

Mortgage backed securities had a decent day yesterday thanks to the equities market. At the start of the day, MBS were moving lower which forced lenders to issue worsened rate sheets from the prior day. As the day progressed, stocks moved lower allowing money to flow into the fixed income sector. The price gains with MBS were not large, but big enough to warrant reprices for the better from all lenders.

We have a busy day of data. First out was the weekly Jobless Claims. This...

The two day rates rally ended yesterday as mortgage backed securities followed treasuries to higher yields. No major economic data was released but continued economic optimism helped stocks move higher pulling money out of the fixed income sector. All lenders did reprice for the worse.

This morning we received data on the housing sector with the release of Housing Starts and Building Permits. Released by the Department of Commerce, Housing Starts data estimates how much new residential...

Mortgage backed securities extended their price gains yesterday after the Department of Treasury successfully auctioned $13 billion of 30 year bonds. The demand wasn’t as strong as the prior day’s 10 year auction but good enough to all MBS prices to move higher for the second day in a row. To remind readers, as MBS price move higher lenders can offer lower mortgage rates but if MBS price moves lower lenders are forced to increase mortgage rates. All lenders did reprice for the better as MBS...

Mortgage backed securities opened lower yesterday forcing lenders to increase consumer borrowing costs from the prior day. The trading action was rather boring with MBS move sideways in an extremely tight range until 1pm. At that time, the Department of Treasury released the results of the 10 year treasury auction which drew very strong demand. As a result, MBS started to rally and lenders reissued rate sheets lowering consumer borrowing costs.

The data picks up today with 3...