24 September 2009 ? Mortgage bonds are higher this morning after the bonds had an extremely volatile day yesterday. The overall effect on bonds for yesterday were a light drop, which was a result of the poor treasury auction as I mentioned in Monday?s update. The bonds recovered when the Fed statement was released and it was announced the Treasury buying program will continue through March or 2010 to keep the mortgage rates hopefully a bit lower and continue to support the struggling housing market. Today inventory of unsold homes fell to their lowest levels since April of 2007 however we have to keep an eye on this number as many banks have held foreclosures and not listed them on the market, which is already saturated with too much inventory. Unemployment continues to be a problem with 530,000 new claims versus the 550,000 which was expected. Bonds are currently up 16 bps for the day.
The 30-year rate is at 4.875% (apr 4.909) and the 15-year rate is at 4.375% (apr 4.433).Email This Post To a Friend.