Mortgage Interest Rates In a Very Tight Range

A&N Mortgage Logo5 May 2009 – Mortgage interest rates continue to move in a very tight range. For now we will continue to recommend floating as we test the market. It looks as if yesterdays huge stock market rally, up over 200 points, was led by the financial banking sector. The positive movement in the stock market usually means that mortgage interest rates will come under pressure as investors move from low risk instruments, like the bond market, to the higher yield stock market. However, yesterday, the mortgage bond market held its own as well. On another note, the 3-month LIBOR interest rate fell below 1% for the first time indicating that the credit markets are showing signs of improvement. You may recall, that the LIBOR rate had spiked to over 6% back in September based on fears that the banks would not be able to repay each other. Chairman Bernanke commented earlier today that the economy is bottoming and will turn upward by year end.

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About Alicia Hyland

Alicia has over 20 years experience in the financial sector including tax, accounting, financial analysis and mortgage loan origination. She enjoys working with new housing developments and first time home buyers. She subscribes to several financial services such as Mortgage Market Guide, My Loan Biz, Wall Street Online to name a few to stay current on matters affecting the housing industry.

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