First Time Home Buyers
Mortgage rates just took a nice turn towards the end of the day in what was otherwise very quiet. If mortgage bonds can sustain their current levels, they’ll close just above key numbers at the 50- and 100-day moving averages.
We’re still right around 5% on that benchmark 30 Year Fixed. The 5/1 ARM is disgustingly low in the upper 3%’s. The 10/1 ARM is interesting as well. At 4.5%, it carries an interesting trade-off versus the 30 Year Fixed for people who know they are going to have a change in life circumstance long before 10 years.
Tomorrow’s ADP report will be a market mover. Bonds had been in a very good streak for about three weeks and almost slipped into a slump.They have more to lose than to gain going into tomorrow’s ADP report and Friday’s government non-farm payrolls report, but today was a show of strength towards the end of the day.
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