What is Happening in the Mortgage Market

Mortgage Bonds are trading higher today allowing mortgage rates to drop and are following through on yesterday's rally. Giving a boost to Bonds is news that hedge fund Paulson & Co., which successfully bet with the housing decline, said that it is buying distressed debt and Mortgage Backed Securities, that are currently cheap.

Stocks also had a good day yesterday but off those levels today with the S&P 500 Index trading below resistance around 943. We’ve mentioned this level many times, and its amazing how stocks have hung around this area for the past couple of weeks.

The New York Federal Reserve bought $23B in Mortgage Backed Securities in the latest week and mainly concentrated in the 4.5% to 5.5% range. This translates to mortgage rates around 5.5% to 6.5%.

Consumer Sentiment came in close to expectations, and caused no market reaction.

See today's rate on the home page:  www.MortgageProsUs.com

Richard Woodward

Banker / Senior Branch Manager

Because You Deserve The Best

Mortgage Pros is Now Envoy Mortgage

Office: (972) 661-5136 Fax: (972) 314-9647

17311 Dallas Parkway Suite 173 Dallas, TX 75248

Visit Us Online - www.Envoy-Mtg.com


Posted by Richard Woodward on June 12th, 2009 10:56 AMPost a Comment (1)

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