Mortgage Back Securities are stabilizing this morning from last weeks major sell off. This is a good thing for fixed interest rates. We only have 38 days until the Fed stops it's purchase of these securities as the stimulus money fizzles out. The Fed is sure that investors will find these appetizing as they phase out of the program. Our industry as a whole are skeptical as there is not a high demand for these securities, investors still have a bad taste in their mouth from the sub prime fall out. If no one steps in to purchase these mortgage back securities, interest rates will rise. Only time will tell, locking in an interest rate before March 31st may be in your clients best interest.
May your transactions be smooth and your pipelines plenty full!
Adam
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