Mortgage Rate Update

Alert To Lock

(When the bond goes down, rates go up.)

As you can see by the chart below the bond ended yesterday in the red, and today it has already lost 28 bps as of this post. 

The news moving the bond today: 

• New Home Sales were great for March, 411,000 vs. 324,000 in February.  This signals positive news for the economy, which is normally bad for bonds. 
• The Treasury department signaled they may start selling some of the $1.25 trillion in mortgage bonds in the 3^rd or 4^th quarter of 2010.  This has the potential of lowering the bond even further, and is weighing on bond trader’s minds.

If you have not yet locked in these great rates, you may very well miss them. 

Don’t forget – the Homebuyer Tax Credit for non-military ends on April 30^th!!  Must have an executed contract by then.