Professional Home Staging and Photography Blog: RATE ALERT - January 29, 2009

RATE ALERT - January 29, 2009

Prices of stocks, bonds and Mortgage Backed Securities (MBSs) are lower this morning after the House passed the $819 billion "stimulus bill" late yesterday. A bill to allow judges to "cram down" mortgage debt in bankruptcy proceedings also passed a House committee yesterday.

The 30-Year FNMA 4.5% coupon is now down 15/32 due to the massive supply of government debt.

Remember, on MBS, as the price goes up, the yield goes down - and mortgage interest rates go down with it. Conversely, as the price goes down, the yield goes up - and so do mortgage interest rates. Expect mortgage rates to get worse this afternoon.

 

East Bridgewater, MA 02333
Phone: (508) 443-1332

Lew Corcoran, ASP®, IAHSP, IAHSP-CB
Accredited Home Staging Professional
Professional Real Estate Photographer

Follow me on Google+

Comment balloon 1 commentLew Corcoran, ASP® • January 29 2009 12:23PM

Comments

Thanks, Lewis... no, not a good day for rates.

Posted by JB Brookman, High School Senior Portrait Photographer (JB Brookman Photography) over 9 years ago

This blog does not allow anonymous comments