Introducing: Secondary Market Corner

By: Pete Radigan, Senior Consultant

SECONDARY MARKET CORNER

No fireworks on the 4th with the mortgage markets remaining steady as the 30-year conforming to 10-year treasury spread narrowed this week with the 10-year treasuries at 66 basis points. With the drop in rates lock volume increased by a robust 20% with the average pull through rates at a respectable 76% for refinances and 84% for purchases. Best efforts to mandatory spreads remain rich at 63 basis points while uncertainty remains the buzz word in the secondary market. The MBA reported this week the average gain on sale for the previous quarter increased to 283 basis points from 263 basis points as lenders across the board increased margins. One other number to note is net production income increased to 61 basis points. Secondary Market services and whole loan trading offered by Spillane Consulting Associates, Inc.