After a week of declines mortgage-backed securities have posted substantial gains this morning.
LOS ANGELES, CA — Feb. 12 (FreeRateUpdate.com) – After a week of declines mortgage-backed securities, which move current mortgage rates in the opposite direction, have posted substantial gains this morning,+8/32 (FNMA 30-yr 4.5 at 100.30). As a result, current mortgage rates have re-stabilized comfortably under 5% with 30 year fixed current mortgage ratesmortgage rates at par for both conforming Fannie and Freddie products as well as FHA loans at 4.75%. .
Mortgage rates have been at this same level for over a week and havent budged for anything, including big swings in stocks. Effecting stocks negatively and indirectly helping MBS prices and mortgage rates was a surprise announcement by China that they’ll be upping reserve requirements for banks in a form of tightening credit. The Dow is down 99.46 points as of 9:01 AM PST. The benchmark 10 year treasury yield, used by many to forecast mortgage rates, is at 3.67, down 0.05 as of 9:02 AM PST. As of right now, while it’s unlikely current mortgage rates change for the good or bad, pricing effecting closing costs has improved. In other words a 4.75% 30 year fixed rate will cost you just a little less than it did yesterday.
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