Mortgage Rates continued their nine (9) day accent posting 375bp for the week. Friday was the only negative day with the FNMA 30 YR 4.5% giving up only 9bp on a quiet day before the Holiday weekend.  The positive gains can be attributed to the negative pull back in the equities market. The DOW gave up 1% for the week, and unemployment rate for August increased to 9.7%, that’s the highest since June of 1983.

This is a very interesting time in our economy, if the financial markets continue to sell off, expect rates to stay low. If we see a bounce back in the equities market watch for mortgage rates to rise fast. This so called recovery feels and look eerily similar to the 2002 head fake.  Believe me I am not a bear although this run since last September’s catastrophic collapse of the markets.

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