Today’s Market Update- Friday July 21st, 2009 1:40 PM ET
Current Trend Direction: Sideways
Risks favor: Carefully Floating
Current Price of FNMA 4.50% Bond- $100.16 +59bp
Mortgage Bonds are up 59 basis points after being up as high as 80 basis points earlier.
Stocks started the day up and have since fallen into negative territory.
As I have mentioned many times in the past, Mortgage Bonds typically move in the opposite direction of stocks. So when you see the Dow moving higher you can usually (not always) assume that Mortgage rates are moving higher as well.
Fed Chairman Ben Bernanke testified on Capital Hill today. Bond traders, fearful of the dreaded inflation word were relieved when Bernanke said “Expectations for a lethargic recovery should keep a lid on inflation this year”.
We suggest continuing to carefully float interest rates as Mortgage Bonds hover above their 50-Day Moving Average.
30 Year Fixed Rates
5.25% APR 5.27%- No Points
30 Year Fixed No Income Check
5.875% APR 5.90% - No Points
30-Year Jumbo Fixed Rates to $729,000
5.25% APR 5.27%- 1 Point
30-Year Jumbo Fixed Rates to $1,000,000
6.00% APR 6.01%- No Points
5/1 Jumbo Arm to $1,500,000
4.50% APR 4.54% - No Points
7/1 Jumbo Arm to $1,500,000
5.00% APR 4.69% - No Points
Tuesday, July 21, 2009
Thursday, July 16, 2009
Mortgage Market Update
Today's Market Update- Thursday, July 9th, 2009 11:15AM ET
Current Trend Direction: Sideways
Risks favor: Floating Rates
Current Price of FNMA 4.50% Bond- 100.78, -16bp
Bonds got a nice boost yesterday from a strong 10-Year Note Auction, giving them a strong 66bp gain on the day and giving them a convincing break above the tough ceiling of resistance, the 50-day Moving Average. Interest rates are lower but, can reverse sharply as technical indicators show bonds are "overbought". Hence, we are cautiously recommending floating interest rates here and be ready to lock in at a moments notice.
Economist and Author Harry Dent said in his July Forecast "This may be the last chance to refinance mortgages for lower fixed rates for the next 3 to 5 years". His forecast calls for stocks and treasury yields to rally, followed by a falling stock market and rising interest rates.
30 Year Fixed Rates
5.125% APR 5.148%- No Points
30-Year Jumbo Fixed Rates to $729,000
5.25% APR 5.35%- 1 Point
30-Year Jumbo Fixed Rates to $1,000,000
6.00% APR 6.01%- No Points
5/1 Jumbo Arm to $1,500,000
4.50% APR 4.54% - No Points
7/1 Jumbo Arm to $1,500,000
5.00% APR 4.69% - No Points
Current Trend Direction: Sideways
Risks favor: Floating Rates
Current Price of FNMA 4.50% Bond- 100.78, -16bp
Bonds got a nice boost yesterday from a strong 10-Year Note Auction, giving them a strong 66bp gain on the day and giving them a convincing break above the tough ceiling of resistance, the 50-day Moving Average. Interest rates are lower but, can reverse sharply as technical indicators show bonds are "overbought". Hence, we are cautiously recommending floating interest rates here and be ready to lock in at a moments notice.
Economist and Author Harry Dent said in his July Forecast "This may be the last chance to refinance mortgages for lower fixed rates for the next 3 to 5 years". His forecast calls for stocks and treasury yields to rally, followed by a falling stock market and rising interest rates.
30 Year Fixed Rates
5.125% APR 5.148%- No Points
30-Year Jumbo Fixed Rates to $729,000
5.25% APR 5.35%- 1 Point
30-Year Jumbo Fixed Rates to $1,000,000
6.00% APR 6.01%- No Points
5/1 Jumbo Arm to $1,500,000
4.50% APR 4.54% - No Points
7/1 Jumbo Arm to $1,500,000
5.00% APR 4.69% - No Points
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