All week we said "wait until Thursday to lock", "mortgage rates will improve after the bond auction on Thursday", "the end of the week will be the best time to lock in your loan". The Treasury auction came and went. After the last round of debt was sold, $13 billion of 30 year bonds yesterday, everything that was supposed to happen in order for mortgage rates to improve...happened. Everything except mortgage rates moving lower that is! Although prices of mortgage backed securities rallied immediately after the auction, prices soon lost progress and most lenders were not able to improve mortgage rates. To remind readers, as the prices of MBS move higher lenders can offer lower consumer borrowing costs. This was a huge letdown for us. But we were still hopeful we...(read more)

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