FNMA 30 yr coupon above 4.5% for 1st time since Aug

Coincident with the selloff in treasuries, MBS are also lower with the 30 yr FNMA coupon today above 4.5% for the first time since Aug 21st. It’s up 10 bps on the day and is up 60 bps this month. So far in ’09, the average 30 yr fixed mortgage rate according to Bankrate.com has averaged about 90 bps above the 30 yr FNMA coupon. As of last night, Bankrate had the average 30 yr fixed rate at 5.11% so there is potential for a jump in mortgage rates if the action in MBS holds into early 2010.

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