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.