Morning Market Update for March 24, 2009
by Tom on March 24, 2009
in Market Musings, Market Report
Well, I figured you saw enough of me yesterday, so I’ll write this one out instead of doing the video thing…..
The markets gave back .125% of what we had gained last week. We’re at:
5.0% for a 30 year refi with 0 pts and a 720 credit score.
4.75% for a 30 year purchase with 0 pts and a 720 credit score.
The 15 year is .125% less than that.
Why did rates go up? A couple of reasons:
1. The flow of money into the stock market yesterday pulled money from the bond and mortgage backed securities markets.
2. More importantly, like I talked about yesterday in my “War and Peace” length analysis of the Bad Bank plan, it is adding to the amount of debt the government is absorbing and is putting upward pressure on the bond and mortgage backed securities markets.
Recommendations:
I remain on the side of recommending that you lock all loans. The upside risk is significantly greater and can happen significantly more quickly than the downside potential in terms of lower rates.
Stay tuned, the volatility in the market is unending so things could change quite rapidly.
