16 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.Email This Post To a Friend.
Today’s Mortgage Rates Still Above 5% But Bonds Going in the Right Direction
July 16, 2009
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