Rates 04-03-08

Rates were little changed today as the stock market and 10 year treasury yield took a bit of a breather today. This is typical after the big run up we saw yesterday. Unemployment figures reached a 2 year high, but no other significant economic news today. I am advising my clients to make a move on market dips as rates are still near all-time lows. My fear at this point is that the big money will move out of bonds and back into the stock market and drive rates up significantly. The mortgage spread to treasury yield is still very high at 2.8 to 3.0 depending on your benchmark 30 year rate source. On the flip side of the coin, when and if the investment banks start dipping their toes back into the mortgage backed securities market, we could see a big decrease in the spread, coupled with a low treasury yield will lead to further drops in refinance rates across the board.