The Mortgage Man

Get more out of your mortgage experience!

Thursday May 22, 2008

Today’s Mortgage Market Is Battered Again By Oil Prices And Threats Of Inflation!

With oil prices hitting another record high at over $135 per barrel, inflation fears are stirring the mortgage bond market to run for the hills.  Mortgage bonds have fallen through 3 major levels of support at the 25 day, 50 day and 100 day moving averages.  For the market to bust through 3 different levels of support is significant, and if you have a mortgage loan working that is not locked…I highly recommend locking today to protect from continued losses.

The jobless claims report came out a little better than expected at 365,000 vs. the projection of 372,000.  Even though this report was better than expected, it still shows significant weakness in the jobs sector, and therefore did not pose any immediate help to the financial markets.

In other financial news, UBS AG reported an additional write off of $19 Billion in subprime mortgage losses.  This is not good news for the sector in general as it indicates that we are not out of the water yet with the credit crisis.

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2 Comments»

  Keahi Pelayo wrote @

Great advice, especially if inflation kicks in.
Aloha,
Keahi

  quadroon wrote @

quadroon says : I absolutely agree with this !


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