Orlando Mortgage Blog

The Bond Market is closed for today's Good Friday holiday. Rates have been been pretty flat again this past week, with the Best Execution offering firmly in the 4.75% basement that we've seen offered. The main reason being the typical lock desks "best bucket" to hedge their pipeline has been the 4.5% MBS (mortgage backed security) coupon. Most loans in this bucket have been originating in the 4.875% to 5.25% range for some time now making the 4.75% rate at zero points a rare commodity. There appears to be very little hope of late to see the coupon move down to a 4.00% level until MBS investors show their demand for it. Next week's Fed speak out of the Federal Reserves meeting may very well give direction to what mortgage rates will do in the near term. There appears to be more likelyhood of seeing a bump up than bump down unless we see market demand for the lower coupon or QE3 materializes and whether that's good or bad is up to you.

Happy Easter everyone.