Archives for April 2012

Interest Rate Update 4.30.12

The bond market is up a bit today as the economic news of the day was a bit bearish.  Stocks are down but not by much.  Overall interest rates for most mortgage loan programs remain stable compared to last week.  Later in the week we get the all important jobs report and some analyst or projecting that to be a bit weaker than expected.  Last week the GDP number was soft, and although earnings this quarter remain decent, the economic data has been somewhat soft.  Fixed rates and Adjustable rates continue their stability.

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Previous Entries:

1.6.12  Interest rates in general have been improving in recent days however the improvements have been slow.  Inflation remains a constant threat to low rates, and many bond investors remain skittish about taking new long term positions in the Mortgage Backed Securities (MBS) market.  Recent news of the largest bond fund, PIMCO, buying treasury and MBS holdings has helped the market.

12.27.11 The turmoil in the Mideast, higher oil prices and weak housing data are helping bond rates to easy.  In general he 10-Year treasury yield is below 2.00% and the flight to safety is helping elevate MBS prices which is driving down mortgage rates.  Uncertainty remains over the coming weeks.  Next week is the all important jobs report which usually seems to drive rates one way or the other.

11.7.11 The bond market continued in a tight range over the last few weeks as bets in either direction are hard to come by.  The MBS market has seen stability as well.    

The best California interest rates have yet to be seen in 2011 according to some while others fear California interest rates may go higher.  Concerns continue about what the federal government will do about the deficit problem and government spending.  Bond investors want to see Washington take a more serious approach to reducing the deficit.  If Washington continues on the same path of over spending that could create significant problems for mortgage rates.  Soon we will here what President Obama’s plans are to reduce spending with the introduction of his next budget proposal to congress.  Gridlock could be a factor in trying to resolve the deficit issue however if both sides can come together and implement a solution mortgage rates may remain attractive to investors.