The Mortgage Man

Get more out of your mortgage experience!

Tuesday October 21, 2008

World’s largest bond fund increases stake in mortgage backed securities.

Mortgage bonds moved higher yesterday on the news that Pimco, the world’s largest bond fund, has increased it’s stake in mortgage backed securities to an all time high.  This led investors to believe that the risk is worth the price in mortgage bonds, and prices soared.

As a home buyer, this means that rates got a lot more aggressive yesterday, and if you are actively seeking a home, it might be a good time to lock your rate.  The drastic increase in rates last week have been almost completely erased, and on a technical level, mortgage bonds have moved back above the 25, 50, 100 and 200 day moving averages.  Pushing through those levels of resistance is a positive sign long term for mortgage rates.

For the latest rates, check www.SteveRussellOnline.com.

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