MBS yields have dropped below 4.0%, and mortgage rates are likely to follow them down (tho not that far).
The spread between the two averages about 15 bps, but with the quantitative easing, rates have been forced much lower — and the spread has widened out to 131bps.
If this persists, expect to see mortgage rates below 5%!
chart courtesy of Peter Boockvar, Bloomberg
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.