Orlando Mortgage Blog

10yr Bond Up 16 Points From Prior Close

December 7th, 2010 11:02 AM by BILL WILBANKS

    

Points are up 0.375% point or more so far this morning. After the Presidents comments last evening the 10yr went from a 2.922% closing level to 3.0824%, new high since late July, at 10:50 AM ET and at that level I would not be surprised to see more rate sheet adjustments this morning. Remember good news is bad news for bonds generally (2 year tax extension is pretty positive unless you are a Democrat in congress today) and we have an important 3yr issue sale today with results out after 2 PM. If you are considering refinancing or have a contract to buy you need to get your application moving so you can lock a rate at some point. Don't let your options slip through your fingers through lack of diligence.

Update: The 10yr has risen so much, so fast today that it may be cheaper to quote it by the pound soon. Not Funny! After closing yesterday at 2.922% as shown above, it has jumped 22 bps to 3.14% at 3:15 this afternoon . Why? Heavy selling of 5, 7 and 10 year maturities has pushed yields to heights not seen now since the end of last June. So after the several rate updates I've received today (now 3 and counting , but the day is not over) that now represents 0.50 to 0.625% point bump up in price today alone. If it weren't for the "limited time pricing special" available right now on new purchases only the 30 year fixed, 30 day price would be 4.75% zero points on a 720+ credit score buyer. As it is, it's now at 4.50% on that example only. Let's hope it settles a little at or after market close this afternoon.

4:30...Just received the 4th pricing sheet update today. Another 25 bps+ bump putting the 30 yr purchase above now at 4.625% zero points on new purchase deals at the moment. That's nearly another 100 bps for the day.

Posted in:General
Posted by BILL WILBANKS on December 7th, 2010 11:02 AM

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