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
 

Have Questions? Call 949.973.0141

Mortgage Market Report 6/6/12: Here Today Gone Tomorrow!

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. 

 Last Friday, the U.S. treasury hit a new low at 1.43%. It was history in the making. But as they say, what’s here today is gone tomorrow. Mortgage backed securities remain volatile with Europe’s fragility leading the way. Since Friday’s bottom, the yields on bonds have risen steadly. Treasuries closed the day up .09 at 1.65%.

The Mortgage Bankers Weekly Applications Survey Index increased 1.3% as refinances rose 2%.  The purchase component fell 3%.  Refi’s now comprise 78% of the market with ARM loans falling to a 5% share.  Average 30 year conforming fixed stood at 3.875%, 15 year at 3.20%, and 5/1 ARM at 2.875%. In May, Prime Lending’s purchase to refi ratio was 70% to 30%, a testament of our ongoing ability to take market share in the Realtor/Builder space.  Nonfarm Business Productivity, the output per hour of all workers fell .9% in Q1.  Unit labor costs rose 1.3%.  The drop in productivity is the largest this year, reflecting slower overall economic growth.  All quiet on the European front as speculation is that world powers will collaborate to pull their financial crisis out of the ditch.  That in turn has put a “risk on” bid in stocks with the Dow up $286.84.  Markets are still extremely volatile.  Best to be a live dog and not a dead lion.  Lock em’ in my friends!

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