We saw the bond market erode further today. We are actually now watching the FNMA 4.5% bond instead of the FNMA 4.0% bond because the 4.0% is off the chart...
The FNMA 4.5% fell over 103bps...Rates UP again today and tomorrow.
Jobs report comes out tomorrow morning and we are thinking things may come in better than expected. This is great news for the economy but tough for the mortgage rates. PERSPECTIVE: with the 30 year rates at 5.375% range we are STILL seeing some of the BEST EVER rates.
Hang onto your hat!
The economic stimulus package has NOT EVEN KICKED IN YET> Effects from that will not take effect until late 2010 as many of the projects that will have an impact are still in the planning stages. Analysts are criticizing the feds because it is looking more and more like the economy is turning around on its own and much of the pork spending is only going to add strain to the already severe deficit. Hmm...
As long as inflation is kept in check, we should hopefully see a steady increase of rates vs. the rocket ship that took rates up in the 80's.
Have a great eve,
