RateWatch - Glimmer of Hope?

Market: Still a drift downwards, but that drift has abated some and there appears not to be any strong force pushing bonds lower. The S&P continues to be unable to break through the 944 level, and there is bad economic news on the way, according to many sources. Add Fed buying to the mix, and we could see rates move a bit lower over the next month or so.

Analysis: Comment out of John Hancock is that bad economic news coupled with the expected Fed announcement on June 23rd of increased Fed buying of bonds will cause rates on mortgages to move lower in the 3rd quarter. Here's hoping. It is true that the subprime loan resets are mostly behind us now, which is causing the market to stabilize, but it is also true that the resets in Option ARMs are mostly still ahead of us, and those have a much larger capital volume than what we've gone through so far. Some are predicting another two yeras before the clouds begin to break in financial markets.

Personally, I think if you are prepared you shall not fear. Let us all get prepared then, shall we?

Cj
www.lehilender.com