Yesterday, MBS gained 35 bps resulting in improvement for the 30 yr. fixed rates.  However, we have reached a point where you may see less of the market gains affect interest rate and rebate pricing, as lenders hedge themselves against a sell off due to there not being much more room for improvement.

We have had three positive data releases without any negative impact on pricing.  This is due to the market still believing that there will be a government shut down and that is why MBS pricing is rising and Treasury yields are falling.

Europe is helping drive pricing up as the European Central Bank said they are ready to pump more cash into the banking system and are considering other stimulative measures.

Weekly Initial Jobless Claims hit 305K vs. the estimated 325K and the prior reading was revised to 310K.  Those are very low readings and will have a negative impact on pricing.

Today's Daily Rate Forecast has been made available to you by a Mortgage Professional who has access to real time Wall St. data and instant market alerts with breaking news.  If you would like to know the benefits of locking your rate vs. floating, we are available to answer any questions you may have about this information or your unique loan scenario.

- Michael Corboy
www.specialtyfinancialmtg.com