Rate Update June 23, 2009
As we know mortgage rates typically rise when the stock market rallies. That is the case this morning with the Dow Jones Industrial Average surging past the 9,000 mark for the first time since January.
Stocks are rallying on a flurry of positive earnings data from Ford Motor Co., AT&T, and 3M.
However, stocks are also benefiting from National Association of Realtors report which showed that existing home sales rose for the 3rd straight month in June. The same report also showed that inventories fell to 9.4 months vs. 9.8 the month before. This is great news to share with homebuyers who are concerned about the housing market.
There is significant technical support for mortgage-backed bonds at present levels but we still think locking is the best play if you haven’t already.
Current Outlook: locking