Tuesday, May 31, 2011
Originator lock activity was reported to be mixed last week. However, on average it seemed that locks were mostly flat to slightly higher week over week. The pick up in volume that is normally associated with a rally like the market saw last week was probably tempered somewhat by borrower’s focus on the upcoming holiday. The 30yr primary rates remain in the 4.625 – 4.75% range. The primary/secondary spread (the difference between primary rates and the interpolated MBS par coupon) is currently at ~70bps, which is slightly tighter week over week but still within the recent range.