As interest-rate volatility calms, mortgage spreads have fallen off a 15-month high, with...

|By:, SA News Editor

As interest-rate volatility calms, mortgage spreads have fallen off a 15-month high, with Fannie's current-coupon 30-year fixed-rate securities yielding 0.79 points more than 10-year Treasurys. The spread was 0.99 points on Dec. 1. "The basics of mortgage math tell you mortgage-backed securities should do well in an environment of declining volatility," says CRT Capital's Ken Hackel.