Rate Update for July 24, 2008
Mortgage rates have improved modestly today thanks to a weaker stock market and technical trading patterns.
The Dow Jones Industrial Average is currently off by over 100 points in response to weak earnings results out of Ford Motor Co. & slower than expected home sales. The weakness in stock is creating additional demand for bonds.
We can also credit the move lower to technical trading patterns. As the chart shows below, mortgage-backed bonds are “bouncing” higher off the recent low levels that they reached. This same pattern unfolded in the middle of June.
In real estate related news, I have posted a new article to my blog about key points in the housing bill expected to get signed into law in the next week. Here is a link to read it for yourself.