| Aug 19, 2011 2:22PM Despite a volatile back-drop, mortgage rates continue to hover near all-time lows. The reason we bring up volatility again is, although many lenders have greatly improved their consumer rate quotes over the past two weeks, there is an increased amount of variety in what individual lenders are now quoting as their BestExecution rates. This is a factor of price volatility in the secondary mortgage market . Unfortunately when volatility picks up in the secondary mortgage market, the cost of doing business... Aug 19, 2011 3:36PM More than a few of you have asked for a chart of the relative performance of MBS versus Treasuries. Here a couple quickies that I think really illustrate the disconnect. The first chart is simply of Fannie 4.0 30yr MBS Yields vs 10yr Yields. I set each of the Y-axis scales to the same distance between highs and lows (3.0 to 4.0 for MBS and 2.0 to 3.0 for 10yr notes). That should give a better sense of how the two have moved relative to each other. Keep in mind that there's a SUBJECTIVE component...
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