Keeping up With the Mortgage Rates

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Today's Rate Volatility: HIGH What happened yesterday? Mortgage backed securities (MBS) gained +21 basis points from Friday's close which caused 30 year fixed rates to move slightly lower.  MBS are closed -21BPS worse for the month meaning that rates were higher at yesterday's close than at the beginning of the month. Former Treasury Secretary Lawrence Summers was widely believed to be the next Federal Reserve Chair nominee.  But after the markets closed on Friday, he announced his withdraw from consideration.  This means that Janet Yellen is considered the new front-runner. MBS jumped over +70BPS in early trading Monday morning as a result.  Why?  Because Summers was considered more "hawkish" than Yellen and the market had priced in him raising the Fed Fund rate sooner than Yellen would. This occurred as the "knee-jerk" reaction to the Summers' news started to wane as traders still are hedging that the FOMC will announce some measure of tapering this Wednesday and who the potential future Fed Chair is in 2014 has no bearing on that announcement. What is on the agenda for today? Don't miss out on the mortgage industry's premiere insight and commentary. Subscribe to RateAlert Executive today and get today's lock advice, complete market commentary and forecast for today, and watch the full Morning Coffee Update video with Bryan McNee - all available only to our Executive subscribers.