10 July 2009 ? Mortgage backed bonds struggled yesterday and closed down 34 BPS. This morning bonds opened up 38bps and continue to maintain the gains?currently the mortgage backed bonds are up 50bps. The Dow is down 31 and has not had a significant rally in some time. Chevron warned investors about concerns over future profitability which shook up the stock market a bit this morning.
Consumer confidence remains weak as the University of Michigan sentiment reports 64.6, as opposed to the 70.3 estimated. There are continued worries about the risk of higher unemployment.
All of this news this morning has given the mortgage-backed bond market a boost, however we are right in the middle of some resistance. However, mortgage rates are very good right now and if many consumers remember the “experts” predicting mortgage rates going to 4% that never materialized and many consumers did not take the opportunity to refinance when the 4.625% 30-year rate existed. While we may not hit the 4.625% again, some well qualified consumers may be able to obtain the 4.875% 30-year fixed. Learn from the past, take a good mortgage rate when you can and right now is a good time to consider locking in your loan!
Have a great weekend.