Mortgage-backed securities reached their high for the year today. Favorable repricing took place. It was a very significant day for financial markets. Concerns about debt problems in Europe and the pace of global economic growth sparked a large rally in the mortgage markets and a large decline in the stock market. The Dow was down 510 points, and is now down over 1,300 points from its July 21 closing level, to the lowest level since March.
We get the most important data point of the month tomorrow morning at 8:30am. Needless to say, investors are nervous that the economy might be losing steam. The jobs report will set the tone for tomorrow’s trading day.
What is the advantage to all this negative news on the foreign and domestic economies? The cheapest mortgage rates we have seen all year. With 30 yr fixed rates back at near 4%, your buyers may be more motivated to proceed with the purchase they have been considering.