Mortgage Rates: 5 Straight Days of Improvement
By: Ed Ferrara
Mortgage rates are down under 5% thanks to 5 straight days of improvement.
Slight improvement started on Monday and continued through Thursday. On Friday rates dropped sharply following a close to 4% decrease in the 10 year bond yield, a bench mark for 30 year fixed mortgage rates.
Common thought is that a healthy economy is bad for mortgage rates. Despite strong housing data, better than expected earnings reports, cash for clunkers success, and finally less decrease in the GDP than expected mortgage rates moved downward. Mortgage rates may stay at, around, or under 5% during a recovery period after all. That’s reason for optimism when it comes to home sales where low rates are so vital.
Obama and his staff will get to work this week trying to duplicate cash for clunkers success in the housing market. Their number one priority will be the tax credits. They’re sure to focus a lot of attention on keeping rates low as well.