Mortgage rates were all over the board last week because the Fed meeting was optimistic. With this happening the Stock market was stronger taking money out of bonds. Today, however, mortgage bonds finished higher by about 25 bps which is helping with mortgage pricing. We are sitting on a level of support which means I am floating interest rates right now hoping save my clients more money.
The S&P 500 is testing a strong ceiling of resistance this morning. Stocks have enjoyed a strong move higher over the past couple of months and could improve more if prices break through the ceiling. If not, the Stock Market may be in for a decline.
In other news, Warren Buffet said he is very optimistic about the future of the economy and is seeing signs of a turnaround in the residential real estate market. That makes now the perfect time to benefit from today’s affordable home prices and historically low interest rates. After all, as the economy moves higher, both interest rates and housing prices will follow suit.
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