These past few days has been good for Mortgage Backed Securities and the Bond market. The rally has pushed Bond prices above the 200 day moving average, causing interest rates on a 30 year fixed rate loan to fall into the middle 4% range. How long the rally will last is uncertain. As the economy continues to weaken and news of unemployment, lower housing starts, and high gas prices, hit Americans hard, the "Safe Haven" of bonds has driven bond prices to almost the highs not seen since last November 2010.
If you are one of those people who have a 6% loan on your home and want to lower your payments, now is a tremendous time to make that happen. Also, the price of existing homes are at great prices as sellers want to sell and will help with closing costs if you are considering a purchase. With all the negative news, there are some positive signs when it comes to refinancing or purchasing a home right now.
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