Risk-reward of borrowers waiting to lock their mortgage rates based on expectations of better mortgage pricing are at the present, fool’s gold

Wanted to get this out quickly as a worsening Austin mortgage price change is right around the corner.  As I mentioned yesterday, the risk reward of borrowers waiting to lock their mortgage rates based on expectations of better mortgage pricing are at the present, fool’s gold.

Case in point is the continuing spread widening between mortgage backs and treasuries.  Currently, the 10 year note is plus 10/32’s yet MBS are DOWN 9/32’s.  To be honest, this is very strange and must have a fundamental money flow issue behind it.  Trouble is, we just don’t know what that is.  Be very careful out there.  More as we get our arms around this.

About Max Leaman Austin Mortgage

GREAT RATES, LOW FEES, CLOSE ON TIME™ ---- 2012 Ranked #1 Austin Residential Mortgage Lender (Austin Business Journal) 2010, 2011 & 2012 Five Star Professional (Texas Monthly) 2009, 2010, 2011, 2012, 2013 PrimeLending Chairman's Circle Award 2009, 2010, 2011, 2012 Scotsman Guide Top Originator (Top 200 Mortgage Professionals in U.S.A.) Better Business Bureau "A+ Rating" National Lender Rankings (Scotsman Guide): Top Purchase Volume (No. 10) Most Loans Closed (No. 32) Top Dollar Volume (No. 88)

Comments are closed.