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.