Mortgage Interest Rate Market Guide

30 year fixed for tier one borrowers still in the mid 4's but direction is up following stock market improvement.

The September delivery Fannie Mae 4.0 is -0-06 at 101-11 while the FNCL 4.5 is -0-02 at 103-17. The secondary market current coupon is  3.6bps higher at 3.772%. Yield spreads are tighter vs. both Treasuries and interest rate swaps.

Rates up with stocks not sure if this one will last...

Short tweet today due to work load. Sorry.

Yield levels are lower across the curve but off the best levels of the overnight session. The 2 year note yield is 0.8bps lower at 0.585% while the 10 year note has rallied 3.1bps to 2.932%.

I was expecting a nice open but nothing to write home about. Seems rates have found their proverbial floor in the mid to high 4's. Lock'em if you got'em.

Rate sheet influential MBS got their keister kicked by Treasuries today but price levels rose enough to give  lenders a chance to reprice for the better. After new rate sheets were released...loan pricing was as aggressive as it's ever been...

The secondary market current coupon is 2.1bps lower at 3.853% and yield spreads are UNCH vs. benchmarks.

RISK ON TODAY!

Money is flowing out of bonds and into stocks ahead of the release of the 10-year Treasury note auction results.

The 3.50% coupon bearing 10 year TSY note is +0-04 at 103-27, 1.3bps lower in yield at 3.045%. Price action has been all over the place in VERY LIGHT VOLUME....but the range is containing chopatility.

The S&P 500 has gained 4.1%, or 42.2 points in the past two days. This morning stock futures are mixed.

One hour before the opening bell, Dow futures are up 2 points to 10,094 and S&P 500 futures are down 1.00 point to 1,066. NYMEX Light crude oil futures are down 0.12 to 75.28 and Gold is up $5.70 to $1,201.80 per ounce.

The 2-year Treasury note yield is 0.04 basis points higher at 0.625% and the benchmark 10-year Treasury note is 0.04 bps lower at 3.034%.

The August delivery Fannie Mae 4.0 MBS coupon is +0-07 at 101-09. The August delivery Fannie Mae 4.5 MBS coupon is +0-04 at 103-18.

RA

Sorry for the short tweet, work calls.

Equity futures are on the rise this morning after stock markets changed tone from last week and rallied globally. The holiday-shortened week ahead is pretty slow in terms on fresh data. Economists at BBVA said none of the upcoming indicators are significant market movers but that if negative surprises occurred in each they would point to a slowdown in growth.

Rate sheet influential MBS are exhausted. Though we should be seeing continued rate improvement due to stock market declines, MBS strength is not showing it. Rates have seemed to hit a bottom.