Interest Rates Rise

It was a tough week last week when it comes to interest rates.  Rates rose on Thursday and Friday after a better than expected jobless claims report and jobs report on Friday.  The stock market was closed on Friday due to the holiday but the bond market was open and mortgage-backed securities took a beating.  This is a combination of the better than expected economic data and the Fed’s end to buying mortgage-backed securities.

So what lies ahead?  Well, we have a lot of supply coming on the market this week so that will make it tough on mortgage-bonds and interest rates.  Rates are still low.  We have just been spoiled.  I wouldn’t count on the Fed jumping back in unless there was some type of double dip recession.  The bottom line is to lock in these low interest rates while you can.