Mortgage Market Update

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