Rate Update March 20, 2009

Fixed Mortgage Rates are higher than yesterday.  

The party didn’t last long in the Bond trading pits.  Yesterday I spoke about how the threat of inflation…even the idea of inflation from recent announcements can be a big party pooper on Bonds; that is exactly what we are seeing now.  Yesterday Mortgage Backed Securities started to sell off at the exact point that they did when bonds made a run in January and lenders were very quick (and still up to it this morning) to increase interest rates.

I think that it is very important to remember that the purchase of Mortgage Backed Securities by Fed (they have purchased $235 Billion since November) will only help to keep interest rates low, but it will not force rates down to any magical number.    

Current Outlook: Bias towards locking

The views and opinions expressed in this site are those of the author(s) and do not necessarily reflect the official policy or position of Cherry Creek Mortgage Co., Inc. This is for informational purposes only. This is not a commitment to lend.