Mortgage Rates Predictions

  June 11, 2008 | St. Louis Mortgage Rates are coming DOWN!

We have a good bond rally helping drive mortgage rates lower this morning.  Currently, FNMA 5.5% Mortgage Bonds are selling up +84bp for 98.25.  As we mentioned earlier in the week Mortgage Bonds seamed oversold.  Today the Fed Beige Book Survey is released at 2:00pm ET.  I would predict we have an even stronger rally tomorrow if retail sales miss expectations.  The 200 day moving average is currently 99.56.  With the volatility in the market as of late getting back the 138bp we need to reach it could happen in a day or two.