Mortgage Rate and Market Recap for the Week of September 15th – September 21st, 2008
Not a Slow News Week!
Wow. What a wild ride last week was! With a stock market moving up and down 400 points at a time, it wasn’t a week for the faint of heart. Mortgage rates traded within a 1/2% range, but still kept at historic lows.
A very general summary of the week would be that when the stock market was loosing, mortgage rates were improving. The opposite was also true.
Fed Meeting
As you can see below, the Fed met this week and decided to keep the fed funds rate unchanged. Everyone was really in the dark on what the Fed would decide to do. Futures (the predictions) were showing a very high probability of a cut. Ultimately, there was no move.
What Did Those Reports Say?
Each week, I put up an economic calendar of news coming out that following week. Here’s the results from last week:
What Impacts Mortgage Rates?
If you’re looking to purchase or refinance a home, it’s important to know what moves mortgage rates. There are normally two major things that impact the direction:
- Economic News. (That’s these calendars).
- International News. (major events, war related, etc).
- Stock Market. (Money flows from equities (stocks) to bonds when it seeks shelter).
What Are Rates Based On?
It’s been mentioned before, but as a common reminder – mortgage rates are only based on one thing. Mortgage Backed Securities (MBS). The only way you have access to these is through live bond quotes.
Looking For Mortgage Rates?
If you’re looking for specifically what mortgage rates are doing, I’d be happy to help with a custom rate quote. Each scenario is different (there are 27 different factors a mortgage rate is determined by). If you or someone you currently know are looking for a mortgage, I’m here to help!
Information without obligation. That’s my policy. If you like what you hear, my team would love to help!
