Interest rates Continue to Feel Pressure

Mortgage rates have not tracked back down as we had hoped. We are starting to see signs of a bottom to this sell off, but the low rates many were hoping for are no longer available and we've moved pretty far away from them in terms of secondary market pricing.

There are a number of reasons for this shift in investor sentiment, but the primary reason is the announcement made earlier this month that the EU had/has come up with a plan and are in agreement and will be releasing details at the end of the month. This announcement has been enough fuel equities which has led to a consistent sell of in the bond market.

It's my professional opinion one heavy hand on our market right now are the bailouts being discussed. I've heard 2 trillion in new Euros, the IMF wanting 250 billion to assist in the EU bailout... these are two examples that come to mind, and something I make point to because it infers inflation and that is the antithesis to mortgage backed securities.

Moving into the weekend I do not expect rates to mount any sort of recovery, and will probably continue to sell off or trade in previously established ranges we now find ourselves in once again. We'll need an international tape bomb to pick our market up and move rates back down.

I do think this headline is coming it's just a question of when it hits the wire.