QE3 working its magic….quite a drop!
Where will we end…nobody knows!
But it appears that the refi window will remain open for business….
One interesting thing to note is the continued drop in MBS security yields. The spread between a 30-year mortgage and the 7-year Treasury has dropped almost 100 basis points in the past two months. This is dropping mortgages rates. The 30-year mortgage rate, as quoted by Freddie Mac, is back to the record-low rate of 3.49%. Fifteen-year mortgage rates are now at 2.69%. This drop will likely spur on more refinance activity which we are already seeing in the MBA refi index.
The Market Today ONLINE
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