Good Economic News and Strong Stock Market Causing Today’s Mortgage Rates to Rise

August 12, 2009

Daily Mortgage Updates

A&N Mortgage Logo12 August 2009 ? Today the bonds opened up 6bps better, which gave us a little hope our rally would be sustained. However, that quickly turned south and bonds are now down 34bps for the day. Stock traders and investors continue to pour money into the Dow and the traders feel that no change in the Federal Funds Rate and positive comments from the Fed this afternoon are causes to buy stocks. The Fed will comment today on the $300 billion Treasury purchase program?slated to end in September?as well as on inflation. The ten-year $23 billion auction was just graded a B and stocks continue to soar, which is pressuring the bonds. We will most likely continue the volatility today and hopefully we will stabilize. Continued rise in the stock market and good economic news will cause the interest rates to rise from their current levels. The first time buyer stimulus package also ends November 30th, 2009, the $8,000 credit that first time buyers (or if you haven?t owned in 3 years) can only be used if you have closed on your home by November 30th, 2009! Right now the 30 year rate is hovering at 5.25% and may increase by tomorrow, we will see after the dust settles this afternoon where we end up.

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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 chrisd@aandnmortgage.com, 773-305-7016, or 773-848-4144.

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2 Responses to “Good Economic News and Strong Stock Market Causing Today’s Mortgage Rates to Rise”

  1. Randall Says:

    Great post. I find this to be a really fascinating topic and you put a new spin on it for me. Thanks! 🙂

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