Scott Storace - Branch Manager, 100 Pacifica Drive Ste. 140, Irvine CA 92618 NMLS #226339 949.973.0141

"From the minute you call me to the minute we close, I have your back. No hassles, no banker’s hours & quick response times." - Scott Storace

  • Home Loans up to $3,000,000
  • Interest Rate Float Down Option

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Mortgage Market Report 5/9/2012: Orange County, CA

This mortgage market report will provide the data and insight from trading on Wall Street. Interest rates are derived from the yield on mortgage backed securities (bonds). When the pricing of mortgage backed securities (MBS) goes up you can expect lower interest rates. When MBS pricing goes down, expect higher pricing on interest rates for home mortgages. 

Results of today’s 10 year note auction just hit the tape with 24 billion peddled to yield 1.855%, a record low.  Demand was still strong and given the record low yield, we feel good about the results.  Give it a B.  Market reaction has not moved the needle much as the 10 year note is unchanged at 1.83% while mortgage pricing is up 1/32nd, it has slipped from the highs.  Keep an eye on the 10 year as we priced plus 3/32’s this morning so any further deterioration in mortgage back levels will trigger a worsening price change.  Weekly MBA mortgage applications were up 1.7% with the refi index getting most of the credit (up 1.3%).  Stocks off their lows but still down 50 on the big board.  Big picture is all about EuropeGiven the political change in Greece and France, the risk which was about 10% that a bank or country would fail (corporate and sovereign debt issues) has now jumped to 25%, pressing risk managers to buy treasuries to protect capital (flight to quality).  This thing in Europe could take years to right itself.  Guess we (USA) will just have to grow without them.  Technically, the market is choppy, trying to justify near historic low yields while assessing risk worldwide.  Our bias, given the nose bleed level mortgage pricing and treasury yields are at is to lock em’ if you got em’.

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