Rate Update January 8, 2009
Fixed mortgage rates are slightly lower today.
We should find out more as the day goes on, but it looks like the Fed was actively buying up Mortgage Backed bonds this morning as they are trading up 22 basis points and reaching historically high levels.
Also causing bonds to trade higher is the fact that stocks are under selling pressure in early morning trading from many companies weak December sales numbers. Wal-Mart, after experiencing one of the worst holiday shopping seasons on record, has announced that they will miss 4th quarter profit expectations. These activities are forcing stocks lower this morning, but helping bonds out.
We expect rates to remain low for the near futures with plenty of ups and downs along the way.
Current Outlook: floating