Long term mortgage rates are not directly related to moves in the TNX. There is still an iverted yield curve. 30 YR rates are often less than 7 & 10 ARMS..
HLS,
I have always been confused by this… How does the inversion of the yeild curve affect pricing?
I’ve noticed the arms pricing out worse than 30 year. Is it fair to assume when the curve is not inverted that the arms would price out better than the 30 yr?
SD R,
I think the 10 year is still the best indicator of mtg rates that we have. However, anything that is not a “plain vanilla” conforming loan is in question.
I think underwriting is still a work in progress and will not be worked out for quite some time for anything that does not fall into the the, below 80% LTV, fully documented income, greater than 680 fico range. i.e non-conforming. It’s all up in the air.
until wall street and the lenders come to an agreement on how to underwrite non-conforming loans there will be no good indicators on these types of loans….
