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RATE ALERT - February 25, 2009

By
Real Estate Agent with Better Living Real Estate, LLC 9152684

Prices of Mortgage Backed Securities (MBSs) and Treasury bonds continue to fall today.  Remember, as bond and MBS prices fall, yields and mortgage rates go up.

The government is selling a record $32 billion in 5 year notes today, and will be selling $22 billion in 7 year notes tomorrow.  As the government floods the market with more and more debt, we can expect to see a general pattern of lower prices and higher yields on bonds and in mortgage rates.

Usually if bond prices fall, stocks prices are going up (and as stock prices fall, bond prices go up). But that is not happening today. Both bond prices and stick prices are falling.  This means that investors are pulling their money out of the markets and will sit on the sidelines for a while until they hear better news.

So far today, the FNMA 30 Year 4.5% coupon is down 12/32. You can expect to see higher costs and/or rates for mortgages this afternoon.

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Lew Corcoran
Licensed Massachusetts Real Estate Agent
Accredited Home Staging Professional
Professional Real Estate Photographer
FAA Licensed Drone Pilot

Director, National Board of Directors,
Real Estate Staging Association (RESA)

Better Living Real Estate, LLC
15 Wall Street, #9157
Foxborough, MA 02035
O: (888) 877-8300
D: (508) 258-9658

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