Wednesday, March 31, 2010

Preparing for the Fed's Exit from the Mortgage Market: Yield Spreads

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HomeToday's HeadlinesATWForumsQ&AMortgage Rates  
Top Stories      
Mortgage market participants must now face the reality of a life without the supportive, flow balancing, volatility calming bid of the Federal Reserve... - MBS Commentary
The reality of a purchase driven housing market is setting in as the refinance index failed to make much progress in Q1 2010 even as mortgage rates held... - MND NewsWire
Fannie Mae's mortgage investment portfolio shrank for the second straight month in February. This will not last much longer though. On Februrary 10... - MND NewsWire
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MBS Quotes
FNMA 4.0 96-30 -0-03
FNMA 4.5 100-07 -0-02
FNMA 5.0 103-02 -0-05
FNMA 5.5 105-11 -0-02
FNMA 6.0 106-07 -0-01
Updated: 3/31/10 4:22 PM
Treasuries
3 MO 0.1501 -0.0099
2 YR 1.0158 -0.0442
5 YR 2.5536 -0.0464
10 YR 3.8276 -0.0524
30 YR 4.7109 -0.0391
Updated: 3/31/10 4:55 PM
Mortgage Rates
30 Yr FRM 5.01 0.01
15 Yr FRM 4.30 0.00
FHA 30 Year 5.19 0.01
Jumbo 30 Year 6.55 0.01
5/1 Yr ARM 4.06 0.02
Updated: 3/31/10 4:22 PM
Latest Video      
View:All Videos
Q1: What Worked, What Didn't
3/31/2010
The CNBC news team looks back at what worked and what didn't in the first quarter of 2010.
The Fed Goes Marching Out
3/31/2010
The Fed is ending today its purchases of mortgage-backed securities and the debt of Fannie Mae and Freddie Mac. CNBC's Steve Liesman has the full story...
End of Quantitative Easing
3/31/2010
Thoughts on whether the economy can sustain the rally, with Roger Bayston, Frankin Templeton Fixed Income Group.

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Recent Comments
Bobby Downey
on 3/31/2010 - read this comment
Mike employment will play a big role in that equation as well. Loan quality is improving but even the most qualified borrowers have trouble making payments when they are unemployed for an extended period...
Adam Quinones
on 3/31/2010 - read this comment
Mike your logic is perfect...there should be less credit risk in the underlying loan thanks to tighter UW regs. I am however referring to extension risk and more volatility in the marketplace. MBS yields...
Mike Winesburg
on 3/31/2010 - read this comment
Great post! Just a thought…… as you said, MBS risk is expected to rise with the Fed's exit. With GSE backed loans continuing to get more difficult to qualify for (based on my experience), could we not...
Mark Kramme
on 3/30/2010 - read this comment
What causes a home owner to stop Paying their Mortgage Payment? Job Loss, Family Illness, Change in Financial Priority's, Their neighbor got a modification that lowered their payment 50%, Mad at the...

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