Rates and Market Updates

"As noted this morning, investors should be getting interested in mortgages now; today saw strong buying in mortgages and narrowing the spread between the 10 yr note note that had expanded to 290 basis points, against the norm of about 150 basis points. Treasuries were better today but not nearly as strong in price gains as the mortgage market. Investors have to begin to see value in mortgages which are now as about as safe as treasuries (the only small fly is delay in re-cooping interest and principal payments in foreclosure action). Normal MBSs have yields about 40% higher than 10 yr notes."

From our partners at Director's Mortgage, Portland Oregon.