Rate Update on MY BIRTHDAY!
Mortgage rates are unchanged from yesterday.
Since falling by approximately .50% earlier in the week mortgage rates appear to have stabilized.
However, there are economic and technical forces that may come into play in the next few days.
Working in favor of mortgage rates are credit worries surrounding Washington Mutual, Lehman Brothers, and now Merrill Lynch. Woes over the financial industry have hurt stocks which is causing investors to seek “safer” bond investments. This additional demand for bonds should favor mortgage rates.
Working against mortgage rates are technical trading patterns. Mortgage backed bonds are currently trading near multi-year highs in prices. This may make it difficult for bonds to rally any further which is what we need to see for rates to move lower.
As a reminder, if you haven’t yet read these two new blog postings they contain important information for real estate professionals.
Post #1- What the bailout means for you