“After a wild run last week, Mortgage Bonds are starting the week on the quiet side. With no economic reports due for release today, Bonds will likely react to action in Stocks as well as a speech by Fed Chairman Bernanke at 11:00 yesterday
Stocks are attempting to maintain a rally, fueled by optimism that 3rd Quarter Corporate earnings will continue to exceed expectations. So far, 61 companies from within the S&P 500 have reported earnings, with 79% beating expectations. It is worth noting that 61 companies is a small sampling of the 500 due to report – additionally the expectations for the earnings have been pretty low.
After last week’s decline, Bonds are now trying to stabilize and hold their ground above a key support level. I recommend Floating, but I will alert you should sentiment change.”..Mortgage Market Guide
Rates up on a rising stock market:
FHA……….. 5.375
Conventional……5.25
How about paying points…discount points…to drive your interest rate for the life of the loan lower. Makes sense if you hold the mortgage long enough to get a return on the investment. Usually is a good idea as long as you intend to stay in the property for more than 4-5 years.
Brian Scott
