Daily Market Update 5/28/09

Mortgage rates spiked higher yesterday afternoon as investors became increasingly concerned that the government’s approach to stimulating the economy would lead to inflation. The U.S. government will need to sell nearly $2 trillion in Treasury bonds this year to fund the massive Federal budget deficit. Rates reached their highest levels since November, complicating efforts by the Fed to revive the real estate market by keeping borrowing costs low. In economic news, New Home Sales rose 0.3% in April, less than expected. Durable Goods Orders increased 1.9% last month, beating forecast. Weekly Jobless Claims came in close to expectations. The mortgage-backed securities market showed little immediate reaction to the data. Stocks moved lower. Today’s session is likely to remain highly volatile.

Leave a Reply

Your email address will not be published.

Back to top