Mortgage Backed Securites's, MBS, are down -33/32 at the end of the day today. The DOW was +$249.
A tough day for mortgage-bankers today...single worst MBS day since 2013.
The American people have spoken. Whether the election results favored your candidates or not -- Donald Trump is now the president-elect and the Republican Party has gained control of both chambers of Congress. The impact of the election results will wash back and forth through financial markets for the next several days as investors begin adjusting to the new political reality. During this investor reorientation period it is important to bear-in-mind the laws of supply and demand -- risk and reward -- have not been replaced. The current period of investor uncertainty will pass -- but until the dust clears -- the prospects for a near-term move to lower mortgage interest rates will remain dim. Models are suggesting the current post-election market tantrum will likely wain noticeably as we get into the first day or two of next week. From there we will be able to make a clearer assessment of the timing and the magnitude of the next Mortgage Backed Securities price bounce.
What this means to home Buyers and Sellers is to be flexible as to when a buyer has to lock their intrest rate with a lender. With both parties being flexible you can lock when the interest rate is most favorable.
Coldwell Banker Burnet