November 14, 2008 at 11:24 am · Filed under Affordable Housing, Gulf Coast Housing, Pensacola, Perdido Key Condo Deals, Residential, The Mortgage Market
This weeks financial news wrap up.
It is interesting the times that we live in right now. The 500 point intraday swings in the stock market have become so commonplace that no one even gets excited about it anymore. Even yesterday, there was an intraday low of -331 only to rally in the afternoon to +552, a nearly 900 point intraday swing. What is even more curious is a buying rally after incredibly bad economic reports.
All of this leads to the conclusion that the markets are trading almost entirely on emotion. Fundamentals appear to have no affect, and that uncertainty bleeds over to the bond market as well.
Mortgage bonds started the week on a downward slide, then recovered Wednesday and Thursday morning with a nice rally. That rally began losing steam yesterday afternoon and continues to show weakness this morning. Daily volatility aside, mortgage rates long term are better than they have been in about a month and continue to trade in a near sideways channel.
Conventional wisdom would lead us to believe that as poor economic data comes out, investors would pull money out of stocks, invest in bonds, driving up the yield and driving down mortgage rates. But, as previously discuss, conventional wisdom does not appear to have a place in this market.
All in all, if you have a mortgage loan in process that you have not yet locked, my bias would be towards locking to protect against uncertainty.
For today’s mortgage rates, or to apply for a mortgage loan, go to SteveRussellOnline.com. Or call 888-257-8383 for a free consultation.
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November 13, 2008 at 5:01 pm · Filed under Affordable Housing, Gulf Coast Housing, Pensacola, Residential, The Mortgage Market
Due to the outstanding rally in stocks this afternoon, bonds sold off to their worst levels of the day. So it is in fact a good time to lock your rate if you were floating to this point. When rates are posted tomorrow they will likely be .125% to .25% higher than quotes this morning. For more on the latest mortgage rates or to apply online, go to www.SteveRussellOnline.com.
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November 13, 2008 at 11:11 am · Filed under Affordable Housing, Gulf Coast Housing, Pensacola, Residential, The Mortgage Market
Mortgage Bonds move higher.
After a sharp sell off earlier this week, mortgage bonds are making a comeback today and appear to be holding steady right at the 50 day and 200 day moving averages. This has had a positive affect on rates this morning as I am quoting 30 year fixed conventional rates below 6% for the first time in over a week.
Initial jobless claims came out significantly worse than expected at 516,000 vs. the expected 479,000. In addition, continuing jobless claims reached a 25 year high at 3.89 million. This bad news for the economy is generally seen as a positive for the bond market as the likelihood of inflation lessens.
At the time of this post, the stock market is up slightly.
To keep up with the latest mortgage rates, go to www.SteveRussellOnline.com, or call 888-25-STEVE (78383)
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