The Dow has improved 23% since March 11th.
Even though the Fed continues to make large investments in mortgage backed securities, this is acting as a ceiling and not a floor. The bonds being purchased by the Fed are keeping rates where they are and not a dime is being spent to buy lower coupons.
The chatter has changed and rates actually increased slightly this week…….The 30 year conventional today is 4.875% with no points and 4.625% with one point.
So the gamble is do we think that the stock market will stabilize over the coming weeks......go up......or go back down. If the latter is NOT the case, then odds are very high that we will actually see slight rate hikes, rather than rate reductions as has been marketed in the media.
Personally I would love to see rates bump up as that would increase optimism and kick people off the fence. I know that statement does not go well with those in the very low price market; but,
I more concern at higher valued homes moving across the US at this time in our economy. I guess time will tell.........
To learn more about news impacting interest rates and mortgage markets, go to www.mbsquoteline.com
And your thoughts...........?
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