V O L A T I L I T Y. That’s how it is spelled. So the Fed chopped rates by .5% and the markets reacted wildly. Mortgage bonds shot higher yesterday and lenders sat on their hands and did not issue price improvements as they should have. Then bonds open flat to slightly higher and do we get to see a vastly improved rate sheet after yesterday’s bond market rally that saw the 10 year Treasury yield hit the lowest point in HISTORY!!!!!!! Nope, pricing in mortgage land is not better. Why is this? Lenders can provide good rates and fatten margins by not improving pricing when pricing has in fact improved significantly. This is what we are seeing as market indicators would say float because pricing has to be getting better, but that’s the issue, pricing was WAY better Monday morning than it is today. When we are living in the land of the volatile, it is wise to lock what works and call it good because there are too many unseen factors at work. ADP numbers were very solid for February but it will be interesting to watch economic numbers moving forward based on the corona virus hysteria.
Have a great day!
30 Year Fixed 3.375%
15 Year Fixed 3.250%
VA 30 Year Fixed 3.250%
**Rates are subject to change without notice based on market conditions. Rate/APR and terms may vary based on the creditworthiness of the individual.
Information obtained by “True North Mortgage” Jim Roberts and Dan Pareja