Posted To: MBS Commentary
There's no doubt you'll see excellent mortgage rates when this morning's rate sheets come out. Many lenders will be at or below their previous all-time lows. Many others will be slightly above. And on average, rates will remain in trend that's better described as flat instead of falling . What's wrong with that? Nothing really– especially when rates are in line with record lows. There is something that's interesting about it though, and it's easy to see when we compare MBS price movement to average rates. Because MBS trade in price, the easiest way to see correlation with rates is to invert one of the lines (otherwise they'd move in opposite directions). All that to preface the following chart which shows UMBS 2.0 prices inverted (the lower the orange line goes…(read more)
Source: Mortgage News Daily
