Rate Update April 10, 2008

Mortgage-backed bonds rallied yesterday afternoon pushing mortgages rates slightly lower. From a technical standpoint mortgage-backed bonds are trading in a wide range and there does not appear to be any significant resistance or support. Because there is no significant technical influence or heavy economic data out today we’ll keep an eye on the stock market. Should stocks rally we could see mortgage rates reverse higher and vice versa.

On a side note, I have posted a Wall Street Journal article on this blog which talks about global inflation pressure (to find simply search ‘inflation’). This article would make excellent Sunday morning reading. In the long-term the pressures outlined in the article would push mortgage rates higher.

Current Outlook: neutral

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.