30yr rates 4.875%, condos higher. Rates up almost 1% since Oct. 8

Mortgage bonds are ‘only’ down 40 basis points after today’s ok 10yr Treasury auction results—it was actually worse and just rebounded a bit. Four ongoing mortgage bond market themes have caused a huge selloff in recent weeks: QE2 is focused on Treasuries and not mortgages, modestly improving economy, Chinese inflation, and profit taking after a boom that began November 2008. This selloff has caused rates to rise almost 1% from lows on October 7-8. Zero-points 30yr fixed rates on loans up to $417,000 for single family homes are about 4.875% as of midday Wednesday, December 8. Loans above $417,000 are higher, and condo rates are higher in most cases.