FNMA 4.0 Bond Up another 47 basis points. I am quoting rates in the 3% range for 5/1 arms lately.
Some of why: Feds announced that they will agree to swap the higher priced coupons like the FNMA 5% or 5.5% bonds for the lower priced 4% and FNMA 4.5% bonds. This created IMMEDIATE though artificial "demand" for the FNMA 4.0 and 4.5% bonds. Supply vs. Demand: pricing soared. Rates are almost at the top of the sheet though and I have been just as amazed as ever to see them continue to fall.
This has almost turned into the "shit show" as a friend of mine says.
Down held on and closed down just 5 points but is hovering back in the 10,000 point range at 10,138 at the end of the day.
With ZERO Treasury Note Auctions on the schedule this week, and not too many market moving reports due out: we are at the mercy of breaking news.
Cheers,
Chad
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Chad Schauers
Montana Mortgage Lender, Bozeman, Montana
Personal Cell: 406 799 8613
Personal Email: metchad@gmail.com
