Rate Update October 24, 2008

Mortgage rates are higher this morning.

Although stocks are trading lower around the world today mortgage rates are moving higher.  Typically we expect the opposite to occur.  So why the change in the dynamic between stocks and mortgage rates?  Watch today’s you tube video and read this link for a full explanation.

Mortgage-backed bond prices have now dipped back below the crucial technical trading level at the 200-day moving average.  This is a bad sign for mortgage rates over the next couple weeks.  We are shifting to a locking position.

In the long run recessionary fears could help bolster bond prices which would help mortgage rates move lower.

Current outlook: 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.