Mortgage Market Update

August 3, 2009 · Posted in News For Homebuyers

Quick view of the mortgage market today. Rates have softened a little bit on a couple of things:

Gross Domestic Product for the 2nd quarter came in significantly less bad (but not good) than expected. That increases the financial markets perceptions that the worst is over.
The Treasury Auctions from earlier this week went better than expected.

We are now entering the phase in the market where we’re waiting for the jobs report next Friday. Expect a lot of volatility and very little movement (market noise) until then. Expect the market to continue to try to sort out the difference between actual economic improvement and a slowing of the pace of decline.

Until then, my recommendation remains to lock all loans. The upside risk is worse than the downside potential.