Thursday, August 27, 2009

Massachusetts Mortgage Rate Commentary 08/27/09

Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!


Thursday’s bond market has opened flat again as investors seem to be unmoved by recent economic data. The stock markets are showing losses with the Dow down 30 points and the Nasdaq down 19 points. The bond market is currently down 5/32, but I am not expecting to see much of a change in this morning’s mortgage rates.

Today’s release of the 2nd Quarter Gross Domestic Product (GDP) revision revealed no change to the previous estimate of down 1.0%. Analysts were expecting to see a downward revision to a decline of 1.4%, meaning that the economy was not as weak as some had thought. While this is considered negative news for bonds since it was thought the economy had slowed at a quicker pace than it actually did, the data has not influenced mortgage rates this morning. It could be that this is relatively old news at this point. There is a final revision being released next month, but it often has little impact on bond trading or mortgage rates.

The Labor Department said that 570,000 new claims for unemployment benefits were filed last week. This was close to forecasts and has also had little impact on bond trading or mortgage rates this morning.

Yesterday’s 5-year Treasury Note auction went okay. It was met with an average demand from investors and the other measurements of success were indicated the same. It was not an overly strong auction, but it also didn’t qualify as a poor sale either. Today’s 7-year Note sale is also of interest to mortgage shoppers. The results of it will be posted at 1:00 PM ET. If it was met with a good demand from investors, we could see …..


To read the rest of the story click on “mortgage”: mortgage



©Mortgage Commentary 2009

* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com

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