Mortgage Weekly Update - Last Week in Review
Foster Weeks publishes a weekly mortgage report which is updated every Monday morning. How is this affecting the San Francisco real estate market? Read our weekly and monthly market reports.DING-DING-DING!! When the bell sounded at the end of the trading day on Friday, traders trudged off the scenes like defeated boxers at the end of a grueling match. Stocks got pummeled last week with a 600-point decline on the Dow, during a week that was full of subprime home loan related headlines. Write-downs of the value of these holdings spooked the financial sector, which led the Stock market on its slide lower.
Normally, Mortgage Bonds and home loan rates find improvement when money is flowing out of Stocks - that money being pulled out needs somewhere to sit, and Bonds are generally the glad recipient. And while some Bonds did enjoy a great week - like Treasury Bonds - Mortgage Bonds actually worsened because of their relation to the issue at hand, fears of the credit quality of these Bonds, and home loan rates worsened slightly as well. And if the Stock market had not sold off so hard, sending money into all types of Bonds, Mortgage Bonds and home loan rates would certainly have been much worse off.
Read the entire report here.
- Foster Weeks
posted by SFResidence.com @ 11:14 AM
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