Author bio section

I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.

Mortgage Rates climbed swiftly this week, reaching the highest point since March 17th, 2015.

Mortgage rates are directly impacted by the trading of mortgage bonds on Wall Street. This week there has been rapid and deep movement to Bond Markets both in the US and Europe – like shaking a bottle of Coke before opening it.

See the chart below for how mortgage bonds (Called Mortgage Backed Securities or MBS in short) have been doing for last week or so. A Red stick means MBS declined in price that day and a green stick means it improved in price.

Get a Live Customized Rate Quote

MBS has an inverse co-relation with mortgage rates. When they decline in price (red stick) rates go up and vice-a-versa.

MBS Last Week April and May 1st




As is obvious, not just its been mostly red days, these are long sticks too – meaning the decline has been sharp. The week ended with a gigantic 43 bps drop on May 1st.

While the economic news in US have been subdued, which should have helped mortgage rates, its the news coming out of Europe which is the real culprit. German Bund jumped in yield and out of nowhere Europe’s stocks are surging.

Next Week – Outlook continues to be bearish. The US 10 Year Treasury will potentially climb some more increasing the mortgage rates in the process.

At some point of time, we will see some minor fall in rates, but it might not happen as soon as next week.

If you are in the market to purchase or refinance – we are recommending not to float. Its safe to lock the rate if you are closing in next few weeks.

Get a Live Customized Rate Quote


Related Posts

  • 95
    Mortgage backed securities (MBS) suffered one of the worst weeks in recent times. As a result, mortgage rates continued to climb higher. After the recent MBS sell off, rates are now at the highest level since October, 2014. However, they are still ~.0.25% lower than at the same time last…
    Tags: rates, mortgage, rate, mbs, affordable, refinance, program
  • 94
    Have you ever wondered how the number is derived that makes up your mortgage rate? Why is your mortgage rate 4.5%? 5.25%? 3%? Mortgage rates are born from bonds and the mortgage-backed securities (MBS) markets. Similar to corporate bonds and the stock market, mortgage-backed bonds trade actively every day. Pricing…
    Tags: mortgage, rates, rate, affordable, refinance, program
  • 94
    Having slipped below 3% for the first time in retrievable memory, the 30-year fixed-rate mortgage had made a symbolic return to 3.01% before slipping once again to 2.99% (for the week ending July 30). Sam Khater, Freddie Mac’s chief economist believes that "It's Groundhog Day in the mortgage market as…
    Tags: rates, mortgage, week, weeks, will, news, affordable, refinance, program
  • 94
    Donald Trump's stunning presidential election win hasn't just spooked the poll pundits, it has spiked mortgage rates too. And the spike is fairly substantial. Between Wednesday, Thursday and Today (Market being closed on Friday), mortgage-backed securities have lost a whopping 236 basis points (bps). And we are not even done…
    Tags: rates, mortgage, rate, will, mbs, highest, affordable, refinance, program
  • 93
    Mortgage rate spike that started after the presidential election results has now gone into the overdrive. Today, the rates reached their highest level in almost three years. The impending Fed rate hike coupled with fear of rising inflation has pushed the mortgage-backed securities (MBS) yield lower. MBS prices and mortgage…
    Tags: mortgage, rates, rate, mbs, highest, price, refinance, quote, affordable, program