Mortgage Market Commentary
Mortgage backed securities (MBS) prices headed lower (rates higher) before the government sells a record $32 billion 5yr notes today and $22 billion 7yr notes tomorrow. FNMA 4.5% coupon 100.73bps, -13bps. Existing Home Sales unexpectedly fell in January as plunging prices no longer attracted buyers, who seem to be waiting for details of the administration's plan aimed at stemming foreclosures and declining home values. However, the drop in prices and low mortgage rates have made buying a home more affordable than ever. Mortgage Bankers Association weekly purchase activity fell 3% while refinance activity decreased 19%, coinciding with an uptick in rates from prior week.
Today's stock market has opened lower and is down 156 points at the time of this writing.
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