Wall Street most at risk in housing downturn

Mortgage market commentary

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Last week’s long-term rates spent another week in relative stability: mortgages about 6.25 percent, held by the 10-year T-note near 4.7 percent.

However, this stability is an illusion. I think the Wall Street end of the mortgage business is entering an episode of distress at this moment, and we will see pricing and availability do some strange things in the next week or two.