How Catastrophe in Japan Could Affect US Mortgage Rates
According to the Fannie Mae 30-Yr MBS, mortgage rates are lower by about 5 basis points, thanks to the rally in US Treasurys, which produced a drop in yields.
Bankrate.com'sovernight on the 30-Yr fell to 4.81 percent from 4.87 percent last week.
Given the uncertainty in Japan, rates now get tricky:
This from Peter Boockvar at Miller Tabak:
"On one hand the news in Japan may lead to slower global growth and therefore a bid to US Treasurys/drop in yields, but on the other hand, Japan is the 2nd biggest foreign holder of US Treasurys and may elect to sell in order to repatriate funds back home. That may lead to upward pressure on US yields."