Morning Market Update
by Tom on March 27, 2009
in Market Musings, Market Report, banks
Hi all,
Apologies for missing yesterday’s market update. To say that yesterday was a zoo would be an understatement. Let’s just put it this way, David Letterman was on when my day ended (and he was on late due to the basketball games).
But enough about my schedule, what’s happening in the markets? A couple of things:
- There continue to be “less bad” economic reports and that has fueled contined buying in the stock markets. It has had minimal effect on the mortgage backed securities market.
- The discussion/arguing over the state of the financial world and bonuses remains a big political issue.
- There seems to be a growing divide among the people who “talk” about the economy in terms of whether this is indeed a bottom (or the start of one) or merely a bump in the road. Time will tell as the markets continue to move on. Next week is the end of the month and I’ve read some who say that the upswing in the market is largely because of “month end” window dressing. So it will be interesting to see what April brings.
Rates have drifted down a bit since I last posted this.
We’re currently at 4.875% on a 30 year refi with 0 pts and 4.625% on a 30 year purchase. Both are with credit scores of 720 or higher and an automatic debit from an account at “my bank” for at least the first 12 months. 15 year are .125% lower on the rates.
My recommendation remains to lock all loans. While I feel the possibility does exist for rates that are slightly lower than we have, I believe the possibility of a market turnaround that would bump rates back up is greater.
I’ll have my Mortgage Market Week in Review later this weekend and that will take a more comprehensive look at some of the issues that are affecting the markets right now. Go to the column on the left on Straight Talk to sign up for it.
Have a good day and stay tuned!
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