Rate Update August 25, 2009

Mortgage rates recovered yesterday afternoon from the increase they took on Friday thanks to the Fed.  The Fed engaged in open market operations yesterday afternoon by absorbing much of the mortgage-backed bond (MBS) supply that hit the market.

Stocks are trading modestly higher this morning on a couple bits of news.

*President Obama reappointed Fed Chairman Ben Bernanke to another 4-year term.  His reappointment is being viewed favorably on Wall Street.

*In housing news, the monthly S & P Case Shiller housing report showed that 18 of the top 20 housing markets in the US experienced monthly increases in home values from May to June (including Portland).  You can click this link for more detailed information.

In other housing news a bill is currently sitting in the House Ways & Means committee that would extend the first-time homebuyer tax credit into 2010.  Click this link to read more and to leave your opinion on the matter

Current outlook: neutral