Mortgage Minute 2-14-13 "Great Day for Mortgage Bonds"

The stock market finished the day mixed with both the NASDAQ, and the S&P up slightly, and the DOW down just slightly. The day was set up to be a bad day for stocks, but when the weekly unemployment numbers came in 27,000 better than expected, that helped stocks stay out of the red for the most part. While this was not enough to really move the bond market, the woes in Europe sure seemed to be. GDP numbers in Europe came in lower than expectations and that news sent the mortgage bond market off to the races as foreign investors look to US Mortgage Bonds as a safe haven from volatility. All and all this only helped us recover the big losses seen in yesterdays trading cycle and brought home loan rates basically back to where they were on Tuesday. The bond market was able to close above a level of support (though just slightly), and with no real big news due out tomorrow will once again look to foreign news and the stock market to determine which direction it is going to go. I have been saying for a couple weeks now that the stock market is due for a BIG correction and when that happens, mortgage bonds and home loan rates will be the beneficiary so be ready to move!!!

*This statement of current rates is not an offer to enter into an agreement for a loan at a specified interest rate, number of points or both. Current interest rates and discount points are subject to change at any time without notice to you. Stated rate examples were calculated using a $300,000 loan amount, 80% LTV and 720 Min Fico at the stated term lengths.  Licensed by the Dept. of Corporations under the CA Res. Mtg. Lending Act – 431-0421; Rates and charges in the advertisement do not apply to all loans made by the financial institution.

Rob McNelis
Loan Officer - NMLS# 830519
Direct: 619.279.6162
robm@summitmortgage.com
www.robmcnelis.com