Take a look at the chart below and you can see the volatile movement of the bond market and mortgage interest rates will correspond accordingly. As bond prices go down, as shown in RED below... mortgage rates go up. As bond prices go up, as shown in GREEN... mortgage rates go down.
This recent uptick in rates is due to many factors, yet the biggest maybe market fears about Fannie Mae and Freddie Mac. You can read more about this, click here. (See "Loan Giants' Woes Push Up Rates.") Now for some good news... the bond market did rally on Wednesday afternoon and has opened well this morning (7/23). Let's hope the rally continues and helps to push mortgage rates down further. On Wednesday afternoon, the bond market started a little rally and continued through Thursday helping to push rates down by .125% to .25% over the 36 hour time period. Let's hope it continues!
Posted by Ken Pederson. Certified Mortgage Planner, CMPS
FAIRWAY Independent Mortgage Corp in Lancaster, PA
PA's Best Lender
Comments(0)