Well mortgage rates have regained some of their losses from last week. Bonds have had two good days in a row, after the comments of Chairman Bernanke yesterday. He said that inflation continues to stay in check, but says the economy will continue to face “formidable headwinds”. This has been viewed positive in the bond market.
I recommend floating for now, but that could change very quickly, stay tuned.
Well its good news for the economy, but bad news for mortgage rates. In the last few weeks we had touched on historically low rates again. However we have seen positive economic news almost every day this week, especially today. Only 11,000 jobs were lost in the month of November, the expectation was 125,000 jobs lost. Also the unemployment rate came in at 10%, and was expected to be 10.2%. This is really hitting the bond market hard today, and rates are headed up as well.
As we have talked about before the climb out of this recession will not be a smooth one, we will have bumps in the road. A chart of this will look more like a W than a V.
For the near future I recommend locking as soon as you can. I will continue to keep you updated.
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