Rate Update June 5, 2009
Fixed Mortgage Rates have increased from yesterday
The May Job’s report was released today and the news was good…for the economy (not for bonds). The report showed that 345,000 jobs were lost in May, far below the expectations of 520,000 jobs lost. Also adding to that positive news (for the economy) were revisions to previous month’s numbers showing 82,000 fewer jobs lost than thought.
The NY Fed purchased $25.5 Billion of mortgage backed securities last week but combined to how much treasuries were auctioned off on the market in the past couple weeks, the Fed’s purchases were the equivalent of putting a band-aid on a bullet wound. This uneven amount of purchases by the Fed and auctions by the treasury has obviously helped cause rates to now become almost as close to 6% than 5%. I hope that none of your clients were waiting for a rate of 4% to purchase or refinance a home. I would consider us very luck if rates get back down to under 5% at this point.
Current Outlook: Floating as stocks still fight overhead resistance