| Jan 25, 2012 4:02PM Mortgages Rates spent 2 days at 4.0% in terms of rounded average "Best-Execution" rates (for detail on what that means, READ THIS POST from a few days ago). Today, that rounded average has returned to 3.875%. Although the underlying average isn't as low as it's ever been (3.88 vs 3.82), lenders tend to price loans in 1/8th (.125%) increments, meaning that 3.875% has been the lowest sustainable best-execution rate. In short, we're back to the promised land. The improvements came on the heels of today... Jan 25, 2012 2:45PM Let's cut right to the chase... Although the 5yr auction earlier today was strong and although there were several paragraphs-worth of content in today's FOMC statement, today has been almost exclusively about one thing: a shift in verbiage of the FOMC statement from suggesting low fed funds rates through "mid-2013" to today's "late 2014." That was the big market mover at 12:30 that kicked off a big rally for MBS and Treasuries. The rally was a bit more aggressive than the "relief rally" that markets...
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