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Thursday, July 31, 2008

Rate Watch 7/31/08: Locking

As you know, bad economic news is typically better for Bond prices and today is no exception to this rule. Bonds are trading higher (bond prices are higher and yield is lower-mortgage rates track the bond yield) in response to a lower than expected Gross Domestic Product Report. In other news, initial jobless claims skyrocketed to 448,000, which is unusually high, but is somewhat skewed because of the way the government reports the number. A better than expected Jobs Report tomorrow could cause Bonds and home loan rates to worsen, so I am recommending locking ahead of this report. As always, I will be monitoring the markets closely and watching this situation and will keep you informed of any changes.