Rate Update August 21, 2008

Rates are modestly lower this morning.

Yesterday mortgage-backed bonds were able to rally in the afternoon thanks to the factors outlined in yesterday’s ‘rate update’. 

However, these factors may be overshadowed by rising oil prices.  Oil prices have bounced off recent lows of $111/ barrel and are now trading up near $120.  Higher oil prices will renew inflationary fears which are not good for mortgage rates. 

Bailout concerns continue to surround mortgage giants Fannie Mae & Freddie Mac following Sunday’s article in Barron’s which suggested that government intervention was inevitable.  It’s difficult to speculate what this would mean for the mortgage industry but I will try to keep you posted as I learn more.

To learn more on this subject:

Here is a link to blog posting about Fannie Mae & Freddie Mac and the role they play in the mortgage industry.

Here is a link to bog posting about Sunday’s Barron’s article.

Current Outlook: locking bias

The views and opinions expressed in this site are those of the author(s) and do not necessarily reflect the official policy or position of Cherry Creek Mortgage Co., Inc. This is for informational purposes only. This is not a commitment to lend.