Rate Update June 24, 2008
Mortgage-backed bonds are trading higher this morning which has helped rates remain unchanged from yesterday despite a sell-off in the afternoon.
The bond market is benefitting from a weak stock market. Over the past week I’ve referenced the impact that the stock market can have on mortgage rates. For a detailed explanation please search for the article, “how the stock market impacts mortgage rates” on this blog.
Tomorrow at 2:15 EST the Fed will give its monetary policy decision and post-policy statement. It is widely expected that they will leave rates unchanged. What is more important is how they craft the wording of their statement. We’ll break this down in tomorrow’s ‘rate update’.
In real estate news, the S & P Case-Shiller Home Price Index report was released today. It revealed further losses to home values in all 20 major metro areas that it follows. To view the report please visit this link.
Current Outlook: neutral ahead of Fed meeting