MBS- FNMA 4.5 price: 102-09 closed.

10-yr Treasury Yield: 3.30% closed.

We’ve definitely seen improving conditions for mortgage rates these last couple of days.  Both the market for mortgage-backed securities AND for Treasuries have improved.  It does help to keep hope alive for this beleaguered mortgage biz. 

Some of the most significant challenges remain in the process of conditions for getting loans closed though.  Consistently, we have challenges with appraisals that must now comply with the Home Valuation Code of Conduct— a well-meaning, but ill-conceived regulation that has placed an impenetrable wall between brokers and appraisers for loans intended for sale to Fannie or Freddie.  While we have many in our industry who are trying to get those rules amended, or removed, it seems the HVCC is here to stay— at least for the foreseeable future. 

On the much brighter side, we are seeing some of the efforts by members of Congress and regulators pan out in improving sales of homes.  October showed signs of life, for sure.  And with the extension, and improvement, of the home buyer’s tax credit coupled with a protracted period of low rates, we are in a good period for people to get those loan applications into process.  The bumps along the way are just part of the ride, I guess. 

But ultimately, the concept around which most of this industry revolves is the idea of your home being your castle.  It’s yours, and it’s a place where you can hang up your hat, lie supine on the sofa in your living room (if you so choose), and exhale in an ever-so ephemeral moment of peace in this crazy world.  Just don’t listen to that leaky faucet!   

As Turkey Day approaches…