There were no changes to rates today from Friday. The financial sector is dragging stocks lower this morning following the announcement that Wachovia is ousting their CEO. The Dow Jones Industrial Average is currently down over 100 points which is helping mortgage-backed bonds move modestly higher. Looking ahead, Friday brings us the monthly jobs report […]
I am often asked by customers whether or not signing up for a bi-weekly repayment plan is a good idea. So that this post doesn’t exceed 10,000 words I am going to ignore the first question to ask which is “should I be in a hurry to pay off my mortgage?” given that you probably […]
Mortgage rates made a surprise reversal lower this morning on inflation & spending data that came in line with analysts’ expectations. Furthermore, we also think that an announcement out of the Federal government that they are opening an investigation regarding price manipulation in the energy trading markets could be helping mortgage rates. For a more […]
As we spoke about in Tuesday’s ‘rate update’ investor sentiment seems to transitioning away from concerns about the credit markets and into concerns over inflation. This morning the Commerce Department revised their 1st quarter estimate of GDP by .3%. This positive news for the economy has pushed mortgage-backed bond below the 200-day moving average (blue […]
Mortgage rates are modestly higher today than they were yesterday. For clients who did not get their rates locked yesterday we are recommending a floating position in the near-term because of technical trading patterns. If you look at the chart below you can see that bond prices have traded lower since last Wednesday when mortgage […]
Inflation, inflation, inflation seems to be popping up everywhere. This morning’s monthly consumer confidence report showed that consumer confidence sunk to a 16 year low. Ordinarily bad economic news would help mortgage rates but this morning it’s not the case. Watch today’s you tube video to understand why. Here are a couple other links that […]
As oil prices continue to hit new record highs inflation concerns are again weighing on bond prices which is pushing rates higher. In yesterday’s rate update we said: “However, we remain concerned that continued inflation concerns will drag bond prices below these levels pushing rates higher.” Unfortunately we are going to shift our outlook to […]
There is no new economic data scheduled for release today. At 2PM EST the Fed will release the minutes from their April 30th meeting. Sometimes this event can draw some reaction in the financial markets. In the absence of any significant financial news we will be watching the stock market and technical trading patterns for […]
We mentioned in yesterday’s rate update that stocks may come under selling pressure because of technical trading patterns. Indeed that is happening this morning which is supporting mortgage-backed bond prices. Rates are modestly lower. The technical trading picture for mortgage-backed bonds is complicated. We are going to recommend a locking stance for individuals who want […]
If you’ve been a consistent reader of ‘rate update’ or this blog you know that inflation expectations are the primary factor for driving mortgage rates. When expectations of inflation increase it causes rates to rise and vice versa. There are two articles published this morning which give contradictory forecasts for inflation. It just goes to […]