This Week in Refinance
If Monday is any indication, the week ahead might be one of consolidation for the markets. I am sensing that the financial institutions might be feeling a little more optimistic about the economy, now we just need them to become more active in the mortgage-backed securities market (MBS) to allow mortgage interest rate dips to hold for more than half a day.
The spread to treasury yield is actually getting tighter, which is one good sign for your refinance shoppers and home buyers. Today, bonds were being dumped, lifting the all important 10 year treasury yield, yet the rate corrections on such a move were much lighter compared to similar yield moves in the previous months. Yes, this could be a good sign for mortgage rates.
Economic reports are relatively light this week, so unless we get some big surprise economic news, I wouldn't be shocked if we stay within a tight and steady range for refinance rates. Hey, we are still at very low rates, so it's just icing on the cake if we get further cuts.
Another good sign for the mortgage market occurred this morning when it was reported that Washington Mutual (Large, large lender), was to get an additional 5 billion dollars in capital infusion. With each successive vote of confidence for the large banks and investment firms, the quicker we will see a bottoming in the housing markets, and this will benefit everyone.
The author is a contributing mortgage consultant with the popular Refinance Tool Box. Visit today for free information and tools provided to help you learn about mortgage refinance.
The spread to treasury yield is actually getting tighter, which is one good sign for your refinance shoppers and home buyers. Today, bonds were being dumped, lifting the all important 10 year treasury yield, yet the rate corrections on such a move were much lighter compared to similar yield moves in the previous months. Yes, this could be a good sign for mortgage rates.
Economic reports are relatively light this week, so unless we get some big surprise economic news, I wouldn't be shocked if we stay within a tight and steady range for refinance rates. Hey, we are still at very low rates, so it's just icing on the cake if we get further cuts.
Another good sign for the mortgage market occurred this morning when it was reported that Washington Mutual (Large, large lender), was to get an additional 5 billion dollars in capital infusion. With each successive vote of confidence for the large banks and investment firms, the quicker we will see a bottoming in the housing markets, and this will benefit everyone.
The author is a contributing mortgage consultant with the popular Refinance Tool Box. Visit today for free information and tools provided to help you learn about mortgage refinance.
posted by Jim Bisnett at
5:43 PM
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