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Mortgage Market Update

click for larger imageThe rate markets are under pressure again this morning. The recent spike in interest rates adds more confirmation to our forecasts that the lows in the interest rates markets are now in place and rates are unlikely to fall to new lows. The recent stampede to the safety of US treasuries became excessive; the run down in rates was mostly in treasuries but mortgage rates benefited as the outlook for the US economy hit new lows in July and August. A lot of concern the US economy would double dip and fall back into text book recession sent investors, both domestic and foreign, to the safety of bonds.  There just isn't much room left for improvement, but a lot of room for rate to go up.  I would Strongly advise capitalzing while you can.

Want to know more on how the Mortgage Market directly effects mortgage rates or need an explanation of the candlestick chart above? Send us an email and we'll gladly provide an in depth article.  Realtors, ask about a detailed presentation on the Mortgage Market at your next office meeting.

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Monday
Jan042010

Mortgage Rates on the Rise

DateMonday, January 4, 2010 at 9:55AM

Mortgage interest rates have been on a steady rise since November 25th, all due to a suffering Bond Market.  Mortgage Bonds have started the New Year to the upside; however, prices still need to break out of the downtrend they have been in for the past 2 weeks.  It appears that Bonds are attempting to stabilize and come out of this downtrend.  However, don’t expect Bonds to recapture all of their losses.  With the Fed buying fewer Mortgage Bonds and wrapping the program up entirely at the end of March, any improvement in rates may be modest at best. 



AuthorPamela Crim | Comments Off |
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