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Rates Not Dropping Til Later This Week, Why?

June 27th, 2016 11:10 AM by Anne James

By Paul Muolo

Thanks to the "Brexit" vote, the yield on the benchmark 10-year Treasury bond keeps falling, but mortgage brokers have noticed that their wholesale partners haven’t cut rates very much, at least not yet.

“Some have cut their rates, but not a huge amount considering that the yield [on the 10-year] went from 1.68 percent to 1.48 percent,” said Brian Benjamin, who runs Two River Mortgage & Investment in Red Bank, NJ. “Even so, at the end of the day everyone will tell you LLPAs [loan-level price adjustments] are still a major factor as many loans have lower downpayments.”

Marc Savitt, president of The Mortgage Center, Martinsburg, WV, said he didn’t see any wholesale cuts in rates on Friday and not much on Monday morning either. “Not yet,” he said.

Andrew Peters, CEO of First Guaranty Mortgage Corp., a retail and wholesale funder, said his shop is staying the course for now. He noted that FGMC is “focusing more on making sure we have the proper risk controls in place to deal with the market volatility over the coming months.”

Other areas of interest: Originations, Secondary/MBS, Mortgage Lending & Servicing, Trends & Profitability

Posted in:General and tagged: Refinancelower rate
Posted by Anne James on June 27th, 2016 11:10 AM


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