Market Update

While the last two months have been a wild ride in the mortgage market the last week has been relatively stable. Rates on 30 year fixed mortgages are currently hovering in the 6.75%-6.875% range with no points. While a run in the stock market like the one experienced this week (the Dow closed at a record high) typically leads to a drop in the bond market and accordingly a rise in mortgage rates, we held steady based on the fact that economic indicators this week had only a minor impact on the bond market. While it may seem that rates are higher than they have been lately, 30 year fixed rates are still a little bit better than they were a year ago.

Today the stock market is slipping due to poor earnings reports for Google and Caterpillar and that means money is flowing into the bond market. Could it mean mortgage rates will improve in the next few days? Maybe!

As always, feel free to e-mail me at peter@mortgagemke.com or call 414.807.7277 if I can be of assistance to you.

Peter