Unwinding
3/8/10 Mortgage Backed Securities are minus 9bp this morning. The Fed has said on numerous occasions that it will unwind the current MBS purchase plan at the end of this month. The information provided at the bottom of this page shows that historically, rates have move up ahead of the spring buying season. Rates over the last few months have stalled at 4.875% for a 30 year fixed rate mortgage. The risk:reward for holding out for .125% better in rate is not a good risk in the current...