Not too often do we see a MBS rally this much on a Friday.  

Currently, Mortgage-Backed Securities are up around half a point in price (the higher the price, the lower the yield) which has allowed most lenders to improve rate sheets this afternoon.  As all things market-related tend to slow down the farther along we get into a summer Friday, lenders are never likely to adjust their rate sheets to match the pace of a more aggressive rally, as these improvements are unlikely to increase their business volume and many market participants tend to shy away from extra risk over the weekend.  So it’s no surprise that, although we are seeing improvements, they are not quite representative of the true gains in the market behind the market.

As I stated in my morning blog, each time rates have moved below 5% they did not stay there very long.  If you are currently floating, it’s a good time to find out how today’s rally in MBS affected the rates available to you and to take a serious look at locking.  Sure, there’s always a chance things could get even better, but there are diminishing returns in terms of both the likelihood of that and the incremental improvements to rates given the price levels reached this week.  Believe me, I understand the temptation of continuing to float with the strength of the rally, and if you are risk-aggressive, or did not see much of a price improvement that could make sense.  But if you have been floating until today, you have picked up sizeable improvements and in the grand scheme of things, now is the time to most seriously consider cashing in. 

Maybe it’s the rally-induced euphoria, but I want to take a brief moment to say I appreciate all of you who have been reading this blog and making comments!  Keep ‘em coming!!!  And if you have a question,  you can ask via the comments section.  Also, make sure you check out the forums section of Mortgage News Daily, click here.  It’s free, fun and informative.  Everybody have a great weekend.