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Originally Posted by GPang
MBS hasn't been good for the past year or so.
too many defaults in subprime loans.
its crazy in the finance sector now.
i'm in mortgages...and i'm feeling the backlashes of all this stuff.
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So am I. That's why I am watching the IMS reports and the jobless numbers, so I can try and track which way the MBS's are moving so I can figure out if I should lock or float. Thanks to the increase in yield on the 5.5% FNMA bond I should have seen abut a 0.625% increase in YSP this morning, the lenders have not priced it in yet though because of the dramatic nature of this morning's ramp up. I think I'll lock on Monday or maybe even Tuesday.
That being said, I wouldn't say that FNMA bonds are not good right now. The FNMA 30 yr 6% bond is showing a yield of around 3%, which should keep rates nice and low. Stick with the GSE's if you're going to dabble in the MBS's.