Mortgage Rate Update

Markets Up, Goldman Brings Down Stocks.

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

As you can see by the chart below the bond is currently surging higher, currently up +28 basis points. 
This is going to help rates going into the weekend if we can hold on to those gains.

The news moving the bond today: 

• There’s really only one story that seems to be moving the bond positively: the government’s investigation of Goldman Sachs. Today, a criminal investigation was opened by Federal prosecutors in addition to the civil suit that has been put them front and center in the news.  Goldman’s stock was just over $170.00 per share on March 1.  As of today, the stock has fallen about $27.00 per share, currently around $143.00 per share.  The rest of the stock market is being weighed down by the recent news of the criminal investigation. 

When investors pull their money out of the stock market, they usually invest it into something more safe like bonds.  This is often referred to as a “flight to safety.”  That is what we are seeing right now, and the bond has reached a high we have not seen since March 24^th of this year.

If you have not yet locked in these great rates, now might be a great time to act. 
If the current action against Goldman Sachs was not in the news, the bond would most likely not be this positive.  That means any recovery in Goldman’s shares that bring investors back to the market will probably have an immediate negative impact on bonds as investors move their money back to the stock market.

Don’t forget – the Homebuyer Tax Credit for non-military ends on April 30^th!!  Must have an executed contract by then.  If you have questions about the extension for military, contact me at your next opportunity.