March 28th, 2014
March 28, 2014; 9:15am
Interest rate trends: Today – Higher; 10 days – Flat; 25 days – Higher
Interest rate recommendation: Locking bias
Mortgage bonds (MBS’s) are worsening this morning even in the face of the Fed’s Evans who said he expects the Fed’s funds rate to remain near zero well into 2015 due to low inflation and high unemployment numbers. MBS’s have improved for 6 days straight, so a correction worse can be expected (which we are seeing presently), but losses are modest and not significant at present time. We will maintain our locking bias while MBS’s worsen. Fixed interest rates came out the same today as yesterday, but the 5/1 ARM did worsen. Have a great day and nice Spring weekend!