Stocks or Bonds?

Stocks or Bonds battle could be good news for you!

The current winner of the stocks or bonds investment strategy goes to ——- Stocks! Know how to tell? Long term mortgage rates have gone up, not down, ever since the Fed lowered the borrowing rate by 1/2 point! If the situation was reversed, the bond yield would be lower, which puts pressure to purchase mortgage backed securities, which, then, lowers long term mortgage rates. Right now, large investors feel they can make more money in the stock market than by purchasing a 10 year treasury bond. Until this reverses, or until it at least evens out, then look for current mortgage rates to stay in the malaise they currently occupy! This does open the door for anyone willing to purchase a home right now, because they will face less competition for that dream home. As soon as rates start to fall, you will have competition for that same home, and a bidding war usually drives up the price! If you would like to get pre-qualified now and you don’t care about the stocks or bond yields, then call me at 707-337-5970 mobile or 530-406-2200 and 707-259-1117 land lines! Mitchell Mortgage handles Fannie Mae, Freddie Mac, FHA, VA, Reverse Mortgages and Hard money too! Talk to you soon!

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>