14 October 2009 ?Today’s bonds opened down 47bps and, after staging a rally, they were pushed back down. We are currently down 37bps and are testing resistance levels. As recommended in recent posts, locking was the bias since we reached a low point in mortgage rates on 10/2/2009. While rates are up slightly, these are still phenomenal mortgage rates and they remain near all time lows.
Also, there is strong sentiment that the home buyers tax credit will be extended. The credit may also be expanded to include a broader range of home buyers in the hopes of further stabilizing the real estate market. There are still many more foreclosures to come as unemployment continues to be a problem. The long term outlook for mortgage interest rates remains stable as the economy still is in a recovery mode.
Strong earnings from JP Morgan Chase and Intel have pushed stocks higher and the DOW has exceeded the 10,000 level for the first time in over a year. Although the Bull market mode has arrived, there is always room for a reversal lower as we may see the market take its gains and retreat.Email This Post To a Friend.