The Mortgage Man

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Mortgage Rates Attempt A Recovery

Mortgage Bonds have been slaughtered lately, but may be correcting.

If you checked rates last week, and then looked again this week, you may have noticed that they are about .5% worse.  Mortgage rates are based on the trades that happen with mortgage bonds and mortgage backed securities.  When traders and investors are buying them, the price goes up, and mortgage rates come down.  When the market is scared of them, the demand decreases which drives up the yield curve for mortgage bonds and therefore causes interest rates to rise to a point where investors are comfortable buying the paper.

If you were looking at a mortgage bond trading chart last week, it looked similar to rolling a marble off the kitchen table…not good.  This week, bonds have been recognized as over-sold, and have recovered almost 50% of the losses.  For answers to your mortgage and real estate questions, check back here often.

If you are currently interested in taking advantage of this incredible real estate market, call me at 888-257-8383, or apply online at www.SteveRussellOnline.com.

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