Mortgage Rates Predictions

 

June 10, 2008 | Mortgage Rates are increasing!

The Balance of Trade was slightly higher than analyst expected today.  Mortgage Bonds are still getting slaughtered -68bp!  The Fed Chairman Ben Bernanke’s speech last night has pushed mortgage bonds to their lowest level since March.  Mr. Bernanke is concerned about inflation, but he believes the market will work itself out.  The Fed’s lack of action will cause a weaker dollar, higher oil prices, and more inflation.  The Fed needs to raise the Feds Cut Rate ASAP!  This will strengthen the dollar, lower oil prices, and LOWER 30 YEAR FIXED MORTGAGE RATES.  Hopefully the FED catches on and starts to increase the Feds Cut Rate now.  I am still standing by the Bond Market Rebounding and the Fed doing their job to FIGHT INFLATION.