For the second consecutive day Mortgage backed Securities, and treasury Bonds had bad a bad day, which translates into higher mortgage rates. We should hvae slightly higher mortgage rates on Wednesday 8/4/2009
The key reason why rates rose today was that Home sales increased 3.6% beating anaylists prediction of 3% This is the 5th consecutive month that home sales have increased.
Good economic news is generally bad for mortgage rates, that is why we will probably see a slight increase.
The housing market seems to be picking up, with values lower, lowe rates , and the first time $8000 tax credit, it would make sense home sales are increasing.
The question is, Is the economy improving. With new appraisal rules and Truth in Lending Regulations, this could slow down again.
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