Daily Mortgage Comment
July 21, 2008
Courtesy of Alicia King, Suntrust Mortgage. (703) 335-6889
Mortgage bond prices fell considerably applying upward pressure on mortgage interest rates. Trading remained volatile. Energy prices subsided a bit but not enough to overshadow higher than expected inflation data. Consumer prices rose 1.1%, higher than the expected 0.7% increase. Mortgage bonds sold off following the release Wednesday and continued to fall the rest of the week. Fannie Mae and Freddie Mac bailout rumors turned out to be true. Unfortunately, the details remained unclear and left mortgage investors still on edge. For the week, interest rates on government and conventional loans rose by about 2 discount points or 1/2% in rate.
Leading economic indicators data Monday will set the tone for trading next week. Be cautious heading into the data releases.
