23 July 2009 ? Bonds opened up this morning up 3 bps but quickly retreated and our currently down 50bps. Rates will increase .125% with this swing and we are now looking at 5.125% to 5.375% on the 30 year fixed rate. Still an excellent rate for buyers and consumers interested in refinancing. The existing home sales came out better with a 3.6% increase from last month and this is the 3rd consecutive month that we have seen gains in existing home sales. Homes are now affordable and with record low rates and the $8,000 first time buyer tax credit hopefully the housing market will continue to improve. The supply of homes, which is an important number, dropped from 9.8 months to 9.4 months which is the best level in over a year. The Dow is over 9,000 for the first time in many months and is up 168 today. When the stock market is up it typically pressures the mortgage bonds as money flows out of the safety of bonds to the riskier stock market. Also weighing on bonds is the announcement that treasury will auction $110 billion in mortgage bonds next week. We will watch closely as we are at a level of support with the bonds that hopefully will hold and keep rates in the low 5?s for the 30 year and the mid 4?s on the 15 year.Email This Post To a Friend.
Today’s Mortgage Rates Up 0.125% to 5.125% to 5.375%
July 23, 2009
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