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.
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