Rate Update November 20, 2008
Mortgage rates are modestly better this morning this morning.
In yesterday’s rate update/ you tube video we focused on the concept of “deflation”.
Coincidentally, the Federal Reserve released a report yesterday in which they acknowledged the future risks of deflation in our economy. On that news the stock market slid to a new multi-year low as investors sold stocks and bought US treasury bonds. While US treasury yields sank yesterday mortgage-backed bonds failed to benefit. Watch today’s you tube video to learn more about the interest rate environment.
We believe that mortgage rates have a good chance of dipping lower over the course of the next few weeks/ months in response to deflationary expectations. If you’d like to review your mortgage situation with us and establish a “trigger point” for refinancing please feel free to contact us.
Current outlook: neutral in the near-term/ floating in the long-term