Rate Update May 11, 2009

Posted on by Evan in Rate Update

Fixed Mortgage Rates are down slightly from Friday.

Mortgage Backed Bonds are off to a good start this morning already trading 37 basis points higher on the day.  The increase in demand this morning is in the wake of a bit of a sell off in the stock market as the Dow is already down over 100 basis points.

Many banks this morning, including BB&T, U.S. Bancorp, and Capital One Financial have been reported needing to pay back funds received from the Troubled Asset Relief Program (TARP).  Paying back these loans is a good thing, and hopefully a sign of some stability, but the way to raise capital for repayment is to sell company stock…which isn’t so good for current share holders because of their shares being further diluted.

Current Outlook: Floating

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