Coincident with the selloff in treasuries, MBS are also lower with the 30 yr FNMA coupon today above 4.5% for the first time since Aug 21st. It’s up 10 bps on the day and is up 60 bps this month. So far in ’09, the average 30 yr fixed mortgage rate according to Bankrate.com has averaged about 90 bps above the 30 yr FNMA coupon. As of last night, Bankrate had the average 30 yr fixed rate at 5.11% so there is potential for a jump in mortgage rates if the action in MBS holds into early 2010.
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.