Mortgage Rates Home to Stabilize Themselves
Yesterday was one of the worst days we have seen in the mortgage backed security market. Yesterday’s optimistic economic data from the housing sector and consumer confidence has the Stock markets questioning the end of QE3. The prospect of it ending sooner than later is pushing equity prices lower. Consider the profit taking after the Dow hit a record high yesterday and you have a recipe for lower stock prices this morning.
The mortgage bond markets are near unchanged, but are well off their best levels of the session in fear that QE3 may be ending soon.
In housing news, home prices have risen 1.4% from February to March and increased 7.6% from 2012. The average home price hit $213,000 in March, up nearly 3% since the beginning of 2013. However, the Mortgage Bankers Association reports that mortgage application volume fell for the third week in a row by almost 9% as home loan rates hit their highest levels in a year.