The Mortgage Man

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Thursday May 29, 2008

Mortgage Bonds Continue To Fall On Shaky Economic Uncertainty

Mortgage Rates Increase

Well, there is not much good news today, so let’s get right to it.  Mortgage bonds moved below the 25 day, 50 day, and 100 day moving averages earlier this week, and after flirting with the 200 day moving average yesterday, it has moved decisively below it today.

So what does this mean for you as a consumer and potential home owner?  Since the 200 day moving average has only been crossed with such vigor 3 times in the last 3 years, this is a very clear indicator that the overall trend on mortgage rates is that they are moving up.  If you have a loan in process and have not locked it, you better do it TODAY.

In other economic news, the Gross Domestic Product (GDP) report came out today showing first quarter growth of 0.9% which is higher than the estimated 0.6% that the markets were expecting.  At the time of this article, the markets are up slightly, but nothing to get excited about.

Also, the Treasury will be auctioning off $19 Billion in 5 year notes today.  Since the auction of 2 year notes yesterday did not go as well as planned, today’s auction is not expected to be any better.

Overall, today’s recommendation for mortgages would be to lock in your rate while you still can, it may get ugly in the coming days.

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