Last Week:
As we mentioned, rates jumped by .375% or so as the mortgage bond market sold off on inflationary news and renewed fears over mortgage related write downs, defaults, and balance sheet concerns at Fannie and Freddie.
This Week:
Spreads – a key measure of percieved risk - between safe haven Treasuries and Mortgage bonds are nearly as wide now as they were just prior to the Bear Stearns Debacle in March. Even the Prime Book of high quality mortgages is starting to labor under the strains of the housing downturn and credit crunch.
Taken together with the ongoing concerns about inflation, the above factors do not create an environment that will foster lower mortgage rates. Ominous signs, if they persist.
The economic calendar also holds some potential market-moving excitement this week. Home sales (existing and new) print on Thursday and Friday respectively. Durable goods orders are also worth watching.
Related posts:
- Monday Market Commentary: Rates Jump
- Monday Market Commentary: Mortgage Rates Improve Slightly on Friendly Inflation Number
- Monday Market Commentary: Mortgage Rates Improve Slightly Last Week
- Monday Market Commentary: Mortgage rates continue to fall
- Monday Market Commentary: Mortgage Rates on the Move
Equal Housing Lender |