Weekly Update of "What's Happening In The Market With Patrick"

Look for the week ahead to be dominated by the results of Wednesday and Thursday's Treasury Auctions together with trading action in the stock markets.

Mortgage investors have fully priced in the poor housing data and have little expectation for improvement in this category until mid 2008.

If the value of the dollar continues to fall on global currency exchanges this week, the mortgage rates on the short-term ARMS will almost certainly edge up higher in the process. 

The buying spree of bonds, created by the massive sell off in the stock market, was the primary driver behind last week's rally.  Stock investors almost always look to bonds and mortgage backed securities when in need of a safe haven in which to invest. 

Unfortunately, once the selling pressure begins to abate in the stock market, that buying spree tends to come to a screeching halt, resulting in an upward move for mortgage interest rates - most likely by the end of the week.

 And that's what's Happening in the Market with Patrick

Monday, October 22, 2007, Patrick Cicala, Countrywide Home Loans