Rate Update for July 28, 2008
Mortgage rates should improve slightly this morning.
Helping mortgage rates this morning:
Credit worries have crept there way back into the spotlight following the seizure of two more banks late Friday afternoon by Federal regulators. These two failures marks the 6th & 7th of the year according to the FDIC’s website. In 2007 the FDIC seized 3 banks. Bad news for the economy can often be good news for mortgage rates and this is holding true this morning.
Furthermore, gas prices are retreating lower. The average price for a gallon of gasoline is now $3.953. Lower gas prices are helping to ease inflationary concerns. Lower inflation concerns translate into lower mortgage rates.
Over the weekend the senate passed the much anticipated housing bill. I will be revising my blog posting on the subject to give you the “low-down” of what is means to you. Be sure to check it out later today at this link.
Finally, looking ahead for the week there are a couple scheduled speeches for Fed officials. Their comments can always shift market sentiment. On Friday we get the monthly jobs report so we’ll be looking towards that report as well. For now, we are going to recommend a floating stance.