24 July 2009 ? The bonds really took a beating yesterday, finishing down 66bps. The pressure came from the rally in the stock market and the announcement of $115 billion in Treasury auctions next week. Today we opened up 6bps and are currently flat, which is a change of -6. Basically this will not impact the rates?we are basically in a holding pattern to see if the stock market retreats and how the auctions will go next week. Besides the $110 billion, there is the regular weekly auction of $90 billion so there is some concern there will be too much supply of the bonds next week. Consumer sentiment came in as expected at 66 with the estimate of 65 however this number may be influenced by the stock market rally which may be influencing the consumers that are surveyed. A strong rally in the market will always boost spirits however as we have said many times, the job losses will continue to weigh on the economic recovery. The unemployment numbers may also not be accurate because when the benefits run out after 6 months those numbers are not calculated anymore, and that hinders the accurate numbers of unemployment. The Dow is currently down 24 and has hit a resistance level as well. The 30 year rate is steady at 5.125% to 5.25% for well qualified buyers purchasing a Single Family Home or Condo (with a 75% Loan To Value).Email This Post To a Friend.
Today’s Mortage Rates Holding Steady at 5.125% to 5.25%
July 24, 2009
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