For the background to this post, check out the original post of “trapped like a rat” on Friday, May 30, 2008.
Bonds rallied on the Monday and Tuesday following the original post to finish and hold above the 200 day moving average. That kept mortgage rates at 6.000% — the high end of the trading range I mentioned on the May 30th post. Since then the results have been disasterous for bond prices and mortgage rates.
The “blue” line is the 200 day moving average.
Bonds are now well below the 200 day moving average. With more inflation worries coming from the Federal Reserve, the outlook for bonds over the short term isn’t very bright.
It seems the new trading range for mortgage rates will start at 6.250%. How high will this range go? Well, that is yet to be determined.
Clay Jeffreys is a Mortgage Consultant with Hillside Lending, LLC and writer for “Blog Pertaining to the Acquisition of a Mortgage to Purchase a Domicile.” Hillside Lending seeks to provide mortgage brokerage services with the highest standards of service, care, honesty, integrity and value; concentrating on owner-occupied, residential financing. For more information about available programs and interest rates, please visit www.hillsidelending.com.
