Mortgage-backed bonds are trading at their highest price in some time and rates are down for prime mortgages. However, the markets remain in tremendous flux. Fed minutes from last month’s meeting will be released today and consumer pricing, which normally could greatly affect mortgage interest rates, will be released on Friday. Also, there has been a lot of talk about a Fed rate cut as housing, mortgage lending and some corporate profits continue to weigh on the economy. This past week the Fed did cut the overnight discount rate and extended the repayment period to 30 days. This was a move to stabilize the credit sector by adding less expensive liquidity to the credit markets. Its affects have been minimal. Stay tuned to be the most informed real estate or mortgage professional for your clients. Thank you for the opportunity to serve you and your clients.
