The Mortgage Man

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Existing Home Sales Better Than Expected

Does today’s existing home sales report mean that we have finally hit bottom?

Existing home  sales for July came in at 5.0 million ahead of estimates at 4.9 million.  Despite this seemingly positive news, stocks are down today fueled by uncertainty with Fannie and Freddie, and traders are moving money into mortgage bonds searching for more security.

Mortgage bonds are currently up slightly today, and we can continue to watch bonds to determine where mortgage rates are going to go in the next 24 hours.  Over the last few days of trading last week, mortgage bonds broke through both the 25 day and the 50 day moving averages.  This could be a positive trend longer term if they can hold these levels.  Currently, bonds are trading in a sideways channel between the 50 day and 100 day moving average.  Today is probably a good day to float your rate pending any major movement.  If stocks start to recover, it would be prudent to lock your mortgage rate to hedge against pending corrections in the futures market.

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