Fears of a global recession have increased due to poor earnings reports from Wachovia, Merck and Boeing. This put pressure on stocks but provided a nice little boost to mortgage bonds, thus reducing interest rates yesterday and a bit more today.
Mortgage bonds have rallied since last week, gaining almost 300 basis points since last Wednesday’s lows. So for now I recommend floating if you are in the midst of a new loan, but be prepared to lock if market bias changes.
For Salt Lake City, UT this morning’s mortgage rates are as follows:
30-year fixed: 5.875%
20-year fixed: 5.750%
15-year fixed: 5.50%