Mortgage bonds managed to eek out some gains late last week as the generally negative economic news and testimony by Fed Chairman Bernanke pushed equity markets sharply lower. Fixed mortgage rates improved roughly .25% on the week.
Friday’s jobs report is circled in red on the calendar – a weak jobs report, or lower revisions of prior reports could push rates lower. In the meantime, look for lot of volatility driven by, in nor particular order: Credit & liquidity fears, inflation, stock movemements, and whatever else may develop out of an economic situation that seems increasingly fragile and markets that are ever more cautious and fearful.
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