Market Commentary: The Mortgage Backed Securities market opened up unchanged this morning however has since improved.  Treasury auctions this week were fairly well bid and therefore we are seeing rates benefit from that situation.  Most of the economic information that came out this past week was supportive to steady to decreasing rates.

A strong or improving MBS market is an indication that stable to decreasing rates can be expected.  On the other hand, soft or decreasing MBS pricing is a sign of potentially increasing rates.

Today’s indicated rates are as follows:

Conventional 30 Year Fixed:        4.625%

Conventional 15 Year Fixed:        4.120%

Conventional 3/1 ARM:               3.500%

Conventional 5/1 ARM:               3.625%

FHA/VA 30 Year Fixed:              4.500%

FHA/VA 15 Year Fixed:              4.000%

FHA/VA 3/1 ARM:                     3.625%

FHA/VA 5/1 ARM:                     3.750%

These rate quotes are based on a $200,000 loan amount, purchase transaction, 30 day rate lock/20 day closing, and a minimum credit score of 740.