Mortgage Market Update
by Tom on June 4, 2009
in Market Musings, Market Report
Well, we lost .125% on the mortgage rates today. We’re at:
5.50% with .125 pts for a refi.
5.25% with 0 pts for a purchase.
(Both assume a credit score of over 740)
What happened? A couple of things:
1. Bernanke spoke yesterday and didn’t say, “We’re going to throw the government check book at the situation because we have got to get rates lower.” The lack of saying that put some upward pressure on things. If you look at what I wrote on the “day after” the bump, you can see that we’re starting to settle into a new range.
2. Initial jobless claims (a very volatile number) came in lower than expected for the third week in a row.
3. Productivity came in higher.
All three of these, but mainly what Bernanke said yesterday reaffirm what I’ve been saying for a while now:
- The odds of rates going up are significantly greater than they are of them going down. I’d put them at approximately an 80/20 higher range.
- I’m recommending that you lock all loans.
I’ll continue to keep you informed. Stay tuned, especially for some analysis of the jobs report that comes out tomorrow morning at 8:30.
Thanks!
Tom Vanderwell
