Morning Market Update for February 20, 2009
by Tom on February 20, 2009
in Market Musings, Market Report
Here’s what’s happening in today’s market:
The Consumer Price Index “core” rate came in higher than expected. That’s actually good news because it shows that deflation isn’t totally taking over.
The stock markets closed on Thursday at their lowest level since October of 2002 and this morning isn’t starting out so good either. The banking industry is taking it “on the chin” quite hard in the stock market this week.
The bond market (Treasuries) have really benefited as people have moved money from stocks to bonds. The mortgage backed securities market has seen some benefit from that flight to quality, but not nearly as much.
We’re down to 5.125% on a 30 year fixed refi at an 80% loan to value with credit scores over 740 and no points (.25% less for purchases) and .125% less on a 15 year fixed today.
Recommendation remains to lock all loans as volatile doesn’t even come close to describing the situation right now. More on that in my Mortgage Market Week in Review (sign up now if you don’t already get it!)
More as the situation requires it…..
