My New Blog

After the brutal beating over the last week and a half, mortgage-backed securities are looking for direction. In total, since “Black Wednesday” (5/27), mortgage rates have risen to a range between 5.500% to 6.000%, depending on individual borrower characteristics. The main driving force behind this move higher in mortgage rates is the belief that our economy is on the rebound. This perception adds emphasis to each scheduled economic report as data sets will either reinforce this economic turnaround or provide evidence of a stabilization with a long road ahead. Optimistic investors will jump at any hint of recovery for fear of missing the boat and higher returns that the stock market can bring. The Fed has remained quiet since mortgage rates began moving higher. Increasing mortgage rates will make it more difficult for housing to stabilize (one of the FOMC's main goals) so it will be interesting to see if Ben Bernanke and the Fed have any other tricks up their sleeve.

Sincerely,

Jerry Lampert

Branch Manager

USN - RETIRED

104 Tremont Street, Port Orchard, WA 98366

Office: 360-874-1239

Cell: (360) 620-5647

Fax: (360)824-7395

E-mail: jlampert@repmtg.com