Salt Lake City’s Mortgage Market Update for Oct. 21, 2008

Mortgage bonds are unchanged following yesterday’s strong rally spurred by PIMCO’s announcement that it had raised its stake in Mortgage-Backed Securities (MBS) to 79% by the end of September, their highest in over 7 years.  PIMCO is now the largest Bond Fund, and by doing this they sent a reassuring signal to global investors that the reward (yield) provided by Mortgage Bonds is worth the risk (price).  This could definitely help the market move forward in a positive manner.  For today I recommend floating if you are in the process of a new loan.

For Salt Lake City, UT this morning’s mortgage rates are as follows:

30-year fixed: 5.875%

20-year fixed: 5.875%

15-year fixed: 5.50%

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