Monday, August 06, 2007

What Are Interest Rates Going To Do? 8/06/07

You like me are asked this question often. "What Do You Think Interest Rates Are Going To Do?" You know now here is a customer focused report for Mortgage Market Direction

Week of: Monday, August 06, 2007

Present Market Conditions
Friday's bond market opened in positive territory following the release of favorable employment data. The stock markets are reacting negatively to the news with the Dow down 42 points and Nasdaq down 12 points. Overall, the bond has held stead through the recent market fluctuations.

With the liquidity crisis in the news, the sub prime market collapsing and jumbo market in limbo, the potential for a conservative swing on the investor side of lending is eminent. Caxton Associates (an 11 billion dollar hedge fund) President Peter D'Angelo wrote in a letter to investors Wednesday that circulated on the Internet, "We believe that this market change will continue to provide renewed opportunities."

Today's data indicates that the employment sector was not as strong as initially thought. This is very good news for the bond market and mortgage rates. Keep in mind, when mortgage bonds move higher, it means mortgage rates move lower. With the uncertainty of the liquidity crisis looming, now is a great time to consult with a trusted professional.

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