Today’s Mortgage Rates Still Above 5% But Bonds Going in the Right Direction

July 16, 2009

Daily Mortgage Updates

A&N Mortgage Logo16 July 2009 ? Bonds opened up 25bps this morning and continued to improve. They are currently (1 p.m.) up 45bps and peaked earlier at a high of 66bps. A few reports that are affecting the bond market today would be the better than expected jobless claims. However there was an adjustment for the auto industry so this number is painting a better picture than really exists. This initially hurt the bond market, but when the Philly Fed Manufacturing numbers came out much worse than expected at -7.5 versus an expectation of -4.5, the bonds rallied. The Philly Fed Manufacturing number has been negative since September of 2008 and validates that the market is still contracting. There are no government auctions on the calendar for next week and the reduced supply may boost the mortgage bonds which should help the mortgage rates to improve back towards the 5% mark on the 30 year fixed rate. If you are currently in the process of buying a home or refinancing you may want to float your rate for a couple of days to see if the bond market recovers from the losses on Monday, Tuesday, and Wednesday. Total losses for the three-day period were -154bps.

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About Chris DePaepe

Chris is a lifelong Chicagoan who was born and raised on the Northwest side. She has a business degree from Rosary College in River Forest and a MBA in finance from DePaul University. She has been in the mortgage industry since July of 1996 and understands the importance of educating clients about the process of purchasing or refinancing a home. Chris?s education and customer service separates her from her competition, from taking an application at 11 p.m. to doing a closing in the convenience of your home, customer service is her #1 priority! With her extensive financial education she is able to pass along critical information to potential clients about mortgage interest and the differences between a 30, 25, 20 and 15 year loan. Chris will run every amortization chart and spend a great deal of time explaining the savings on your mortgage interest by showing actual examples. Also, most first time buyers do not understand the tax advantage of owning a home and she will break that down and show the actual tax advantage of owning a home versus renting. Chris prides herself on taking the time to fully educate every buyer so they are aware of the process from the beginning to the end without any surprises. Whether you are looking to refinance or purchase a home, understanding today?s market is extremely important to getting your loan approved. You can contact Chris 24/7 at, 773-305-7016, or 773-848-4144.

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