Primary Fixed Rate Mortgage Yields Fall 0.06% And Mortgage Servicing Values Rise This Week

By Donald van Deventer:

Kamakura Corporation projections for U.S. Treasuries and fixed rate mortgages this week reflected the 0.06% fall in current 15 year and 30 year fixed rate mortgage all-in yields. This week’s projections show that the implied forward yields for 15 year fixed rate mortgages rise from a current effective yield of 3.372% (down 0.06% from last week) to 5.359% in 10 years, down 0.06% from last week. The all-in yield on 30 year fixed rate mortgages was down 0.061% at 4.162%, after the fall in long term Treasury yields of 0.07% to 0.12% at maturities from 2 to 30 years. The value of net servicing for 30 year fixed rate mortgages rose 0.06% this week. Here are the highlights of this week’s implied forecast:

  1. The current all-in yield on a 30 year fixed rate mortgage is 4.162%, a change of -0.062% versus last week.
  2. The current all-in yield on a 15


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