17 July 2009 – Bonds opened down 16 bps and then quickly continued the downward slide to 38bps. However in the past hour (11:00 to 12:00) they have rebounded to come back to down 16bps. This is important as we need the bonds to stabilize so that mortgage rates stay in the low 5?s. Housing starts were better than expected but the mixed news is that some high profile companies earnings came in worse than expected. The battle of starting to come out of the recession will continue for months and this plays on the mortgage bonds like a yo-yo, which causes the spikes and retreats in the mortgage rates. The mortgage rates are directly influenced by mortgage backed bonds, NOT THE 10 YEAR Treasury. The 30 year rate is hovering around 5.125% and 5.25% today which is still excellent for the first time buyers getting into the market.Email This Post To a Friend.
Today’s Mortgage Rates Still in the Low 5’s for Qualified Buyers
July 17, 2009
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