Optimism in stock markets put selling pressure on fixed income investments yesterday. Prices of mortgage backed securities (MBS) moved down in price which increased consumer borrowing costs by 0.125 to 0.25 in discount. MBS started out in positive territory early in the morning, following Tim Geithner’s "stock friendly" Congressional TARP testimony, investors began to move their trading positions from fixed income to stocks. By the end of the day MBS coupons could no longer hold their mid-day stability and prices were pushed lower by a round of selling. For a more in depth analysis of his testimony, check out the MBS Commentary blog. Yesterday a few lenders were offering 4.5% at par for 30 year fixed conventional mortgages, however once MBS began to sell off reprices for the worse began to come from lenders and mortgage rates ticked up a few basis points.
Read the rest of this article here
-----------------------------------------------------------------------------------------------
To read more Real Estate articles and for FREE list of Foreclosure Listings, Free Home Value Estimate, Free Sold Homes Report or to find a place to rent in the North Dallas Metroplex go to our website at: http://www.WisdomTX.com/
Wednesday, April 22, 2009
Subscribe to:
Posts (Atom)