Low Mortgage Rates Are the Story
Posted On: September 7th, 2009 by James Posted In: Mortgage Rates • Portland Real Estate
This last week gave us an amazing run in our bond market. A run that has lowered Conforming rates below 5% for the time being. I’m not sure how much longer this can hold out as the levels we currently find ourselves at are fairly unprecedented. Not to mention we saw the beginning of a bond sell off right before the markets closed for the holiday. I was able to lock in about 6 clients at the very apex of this market swoon.
I’m watching 2 things this week: One is the added bond supply set to hit the market this week. The government will be auctioning off treasury bonds (which is something that happens regularly) and weeks that these auctions take place have pushed rates a bit higher this year. So we’ll see how the market reacts this week. We have an auction every day this week except for Friday, so expect pricing volatility.
The second thing I’m watching is the overall trend of “SEPTEMBER TRADING”. Apparently September is always a tough month for the markets- traders on vacation, low trading volume, who knows… but the markets usually take a dump in September. This month appears to be right in line with history, showing some weakness so far. This is good news for Mortgage rates, the weaker the stock market… the stronger the bond market (generally), and when bonds are selling, mortgage rates improve.
My prediction for September regarding Mortgage rates: mostly very LOW with some volatility from day to day. Buckle up.
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