The Mortgage Man

Get more out of your mortgage experience!

Monday June 16, 2008

Mortgage bonds continue to trade lower.

Mortgage bonds went into a tailspin last week, and this morning are continuing to trade lower.  This is not good news, yet again, for mortgage interest rates as fears of inflation continue to loom over the trading floor.

Foreign investments in our economy remain strong as the April Treasury International Capital report shows $115.1 billion in foreign purchases up from the $79.6 billion reported in March.  This is due in large part to the fact that foreign investors continue to buy mortgage backed securities in our weakened economy and sluggish value of the dollar.

Oil prices continue to soar including a new high this morning of $140 per barrel.

Based on today’s financial markets and continued uncertainty, I would lock a rate on a mortgage to protect from additional downward pressures.

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