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More Money - 03/09
Posted 03-09-2010 at 11:12 AM by dlenski
More Money
3/9/10 Mortgage Backed Securities are plus 9bp this morning. The Treasury will auction another 72 billion dollars in Treasury notes starting today with 40 billion in 3 year notes. Rates on some products open slightly better today. There was no real reason for the move. We will have to see how today's auction goes to see if the rates hold. Remember China started decreasing its exposure to US debt. Greece also had a large auction last week. Simple supply and demand economics will have to start working soon. The Fed meets next week.
I have listed the average monthly rate for the 30 year fixed rate mortgage for the last 6 years. You will see that rates typically move up between .375% and .50% from January to June. We have not seen much movement from rates so far this year. You can check our past commentary and see that our first quarter projection was for rates to stay between 4.875% and 5.375%. We have actually been at the low end of that range. We feel the rest of this quarter we could be at the higher end of that range. Next quarter we think rates are going to push past 5.375%.
The average rate for January was 5.03%. History tells us that the rate in June should be .375% to .50% higher or 5.40% to 5.53%. There is more upward pressure on rates than downward. You may not have to lock today, but you should soon.
In 2009 Jan 5.05 June 5.42 2008 Jan 5.76 June 6.32 2007 Jan 6.22 June 6.66 2006 Jan 6.15 June 6.68 2005 5.71 June 5.58 2004 Jan 5.71 June 6.29
Here is a list of news being released this week: Retail sales will be released on Friday. The Fed also starts their 2 day meeting Tuesday of next week.
A 35bp move usually represents a change in interest rates of .125% in either direction. Rates typically move up twice as fast as they move down.
www.mortgageserviceswi.com
3/9/10 Mortgage Backed Securities are plus 9bp this morning. The Treasury will auction another 72 billion dollars in Treasury notes starting today with 40 billion in 3 year notes. Rates on some products open slightly better today. There was no real reason for the move. We will have to see how today's auction goes to see if the rates hold. Remember China started decreasing its exposure to US debt. Greece also had a large auction last week. Simple supply and demand economics will have to start working soon. The Fed meets next week.
I have listed the average monthly rate for the 30 year fixed rate mortgage for the last 6 years. You will see that rates typically move up between .375% and .50% from January to June. We have not seen much movement from rates so far this year. You can check our past commentary and see that our first quarter projection was for rates to stay between 4.875% and 5.375%. We have actually been at the low end of that range. We feel the rest of this quarter we could be at the higher end of that range. Next quarter we think rates are going to push past 5.375%.
The average rate for January was 5.03%. History tells us that the rate in June should be .375% to .50% higher or 5.40% to 5.53%. There is more upward pressure on rates than downward. You may not have to lock today, but you should soon.
In 2009 Jan 5.05 June 5.42 2008 Jan 5.76 June 6.32 2007 Jan 6.22 June 6.66 2006 Jan 6.15 June 6.68 2005 5.71 June 5.58 2004 Jan 5.71 June 6.29
Here is a list of news being released this week: Retail sales will be released on Friday. The Fed also starts their 2 day meeting Tuesday of next week.
A 35bp move usually represents a change in interest rates of .125% in either direction. Rates typically move up twice as fast as they move down.
www.mortgageserviceswi.com
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