Rate Update June 8, 2009
Fixed Mortgage Rates have increased from Friday
Mortgage Backed Bonds can’t seem to get any help these days and lenders are taking notice. Interest rates have increased over 1% in the last month despite all the efforts of the Fed purchasing Mortgage Backed Securities. The culprit to rates has been the added supply of Treasury auctions hitting the market in the past weeks. It also seems that in the past six months or so Mortgage Backed Securities hadn’t been reacting to economic news as significantly as they had in the past. I am seeing that trend start to fade away as these past weeks have revealed that even the “smallest” amount of economic news is triggering the volatility of bond prices…and unfortunately for Mortgage rates, it is usually in the wrong direction.
Current Outlook: Locking