Tuesday, November 25, 2008

MBS Market Rallies, Mortgage Rates Set To Improve


I guess this is what happens when the Federal Reserve announces a plan to purchase $500b MBS from Fannie Mae and Freddie Mac. Here's today's Bloomberg article about the plan.

And here's the Treasury's announcement to purchase $200b in additional asset backed securities.

Looks like the Administration is directly targeting mortgage rates.

I expect rates to be ~.25% better this morning, and wouldn't be surprised to see the 30yr fixed in the low to mid 5% range this week.

FNMA 30yr 5.5 coupon
up 130bps at 10:15am

No comments: