Mortgage bonds are unchanged following yesterday’s strong rally spurred by PIMCO’s announcement that it had raised its stake in Mortgage-Backed Securities (MBS) to 79% by the end of September, their highest in over 7 years. PIMCO is now the largest Bond Fund, and by doing this they sent a reassuring signal to global investors that the reward (yield) provided by Mortgage Bonds is worth the risk (price). This could definitely help the market move forward in a positive manner. For today I recommend floating if you are in the process of a new loan.
For Salt Lake City, UT this morning’s mortgage rates are as follows:
30-year fixed: 5.875%
20-year fixed: 5.875%
15-year fixed: 5.50%