Posts Tagged ‘mortgage backed securities’

Mortgage Backed Securities (MBS) are the basis of almost all mortgage interest rates in the nation and these are affected by a number of outside forces, including things that you might not realize, like civil unrest in Egypt. Read More

As a mortgage loan officer, I spend a good deal of time watching and reviewing what is happening on the mortgage market, specifically what is taking place in the mortgage bond market. Read More

Market forces determine interest rates. Mortgage Backed Securities (MBS) are a great indication of what is happening with the mortgage interest rate market. A Mortgage Consultant that doesn’t keep track of the Bond (MBS) market is not doing the job for his clients, the home buyer. Read More

If you look at my previous posts, you will see that I have been saying that now is the time to buy while rates are down and values have fallen. My post about the 10 reasons for a First Time Home Buyer to get into this market explained the reasons that I though (and still think) that now is the perfect time to be buying your first home. Now, it appears that interest rates have started climbing, maybe the imperative to get into the market has become more pressing than it was in the past. The real estate market in the Eugene/Springfield area still appears to be depressed from the high point, but I am seeing more and more purchases come through which means the values are not going to stay low forever. Read More

The Federal Reserve has been purchasing Mortgage Backed Securities for some time now and mortgage rates still aren’t at 4.5%. So ,what gives? Well the answer is really not that hard, nor is it that simple. First of all you need to understand what Mortgage Backed Securities are and how coupon rates compare to the actual interest rate. Below is the chart of MBS purchases from the New York Fed, Feb. 12-18. You can look at their site here. Read More

Interest rates continue to move up and down. The purchase of mortgage backed securities (MBS) has given stability to the mortgage market until today when we saw an across the board drop in prices in both stocks and bonds. The 10 year Treasury was especially hard hit, but MBS sales took a significant hit on today’s market too. Intraday repricing was the norm. Afternoon interest rates were nearly 1/2 percent higher than morning rates. Overall, another interesting day on the mortgage market. Read More