What’s up with mortgages today?

by Tom on October 6, 2009
in Market Musings, Market Report

A couple of things are happening today:

The Central Bank of Australia raised rates today. That is making a lot of people think that the market is getting closer to a turning point. Personal opinion – Australia is a big country and a place I’d like to visit some day, but economically, it’s not that important.
Some independent news paper wrote an article about how supposedly some foreign countries are talking about dumping the US Dollar and using a different currency for international exchange. I’m not putting a lot of stock in it at this point because it’s very unsubstantiated but the possibility does exist. The US Dollar has taken a hit on that report.
Stocks are up today, at least so far.

With all of these things going on, we’ve seen a small increase in mortgage rates. Not substantial but a bit more than they were yesterday.

Recommendation: I’m switching my recommendation from float to lock. The “mood of the market” is shifting and while last week it appeared that the market was going to give us more of a downward trend in mortgage rates, the attitude is different right now.

On a long term standpoint, I think it’s safe to say that my feeling is the trend will be higher rather than lower.

Stay tuned and as always, call me at (616) 292-7559 or e-mail me at tvanderwell@straighttalkaboutmortgages.com if I can be of help.

Thanks!

Tom Vanderwell
Technorati Tags: Mortgage Rates, Mortgage Market Update