The Mortgage Man

Get more out of your mortgage experience!

Tuesday September 30, 2008

Mortgage Bonds continue to find their way in this uncertain market.

As the clouds lift after the largest single day point loss in Dow Jones history, the bond market is not showing a lot of movement.  The mortgage bonds have been trading in a sideways channel for over a week now with little movement in either direction.  This is significant since a sell off of yesterdays proportions would normally signal a strong buy into mortgage bonds.  But, because much of the uncertainty in the market revolves around mortgage backed securities, traders were putting their money in treasuries instead.  This uncertainty continues today as mortgage bonds are carefully creeping sideways looking for direction.

Keep an eye on any triggers that may signal movement in the market, but to be safe, it would probably be prudent to lock your loan in process if it has not been already.  The affect that news has had on the markets lately has been swift and dramatic.  If you wait for news to come out (and it turns out to be bad), you may not have time to recover and get your rate locked before prices freeze and await a market adjustment.


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