Magazine article Mortgage Banking

Month in Review

Magazine article Mortgage Banking

Month in Review

Article excerpt

Summer's here, and mortgage bankers are surfing the crest of a killer wave. At the bottom of this gnarly monster are Treasury rates bobbing under 1.5%, down from an average of 1.94% for most of the year and at the lowest Level in recent decades. Sweet! At the lip of this totally rad curl are stoked bankers as they manage through the good problems of capacity and longer turn times. The face of the wave represents the growing spread between the offering rates of lenders and the Fannie Mae required net yield. Reluctant to pass through large gains in the mortgage-backed securities (MBS) market to the consumer because of issues of secondary marketing pipeline risk and capacity, bankers are amped by the potential for higher profit margins amidst large demand. Increased demand from HARP loans and historically low rates have made this year epic.

[GRAPHIC OMITTED]

Monthly     29-Jul  31-Aug  30-Sep  31-Oct  30-Nov  30-Dec
Averages

15-Year      3.764   3.603   3.514   3.435   3.394   3.323
Fixed
Conforming

30-Year      4.562   4.379   4.054   4.094   4.060   3.936
Fixed
Conforming

30-Year      5.015   4.636   4.387   4.644   4.685   4.458
Fixed
Jumbo

5/1 ARM      3.053   3.065   3.096   3.116   3.198   3. … 
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