Here is this morning’s snapshot of the bond market:

And here is how lenders are reacting as of 8:00am:

So far this morning 30 lenders are lowering rates and only1 lender is raising them.

There are several reasons that the bond market is doing so well this morning.

• 1. The DOW is getting hammere this morning as fears about Europe continue
• 2. Jobless claims spiked, revealing that the economy may not be doing as well as everyone hoped
• 3. Inflation numbers came out and are the lowest they’ve been since 1966 – that is great news for rates

So when you combine a sluggish economy with zero inflation, along with concerns for investors about Europe’s stability, you get an incredible bond rally.

If you have a rate to lock in, now is a great time to do it and take advantage of this opportunity!

Late last year, Fannie Mae conducted a national housing survey to check in on attitudes toward housing, especially in light of the current housing downturn. The research project asked more than 3,000 homeowners and renters nationwide, how confident they are about homeownership as an investment, the mortgage process, the housing finance system, their personal finances and the overall economy.

Survey Results

The survey showed that, despite the downturn, Americans continue to value homeownership.

• Nearly two-thirds of respondents said they preferred owning a home to renting (safety and having a positive environment to raise children were the top reasons to own).
• More than 60 percent said they would buy a house if they were going to move.
• Seven out of ten said that buying a home continues to be one of the safest investments available (only 17 percent believe buying stocks is a safe investment).
• Three-quarters of renters believe that owning makes more sense than renting, because it protects them against rent increases and is a good investment over the long term.

At the same time, people are more cautious and recognize the challenges to homeownership.

• About 60 percent said it would be harder to get a mortgage than it was for their parents, (citing poor credit and income as the main obstacles).
• Nearly seven in ten (68 percent) think it will be harder for their children to buy a home.
• Nearly one-quarter of renters say they will wait longer than they had planned to buy a home.
• More than half said they are making personal sacrifices to own their home, with 24 percent saying they are “sacrificing a great deal.”

In addition, a majority of Americans believe in upholding the financial responsibilities of homeownership.

• Nearly nine in ten said they do not believe it is acceptable to stop making mortgage payments on an underwater mortgage.
• Only six percent of homeowners said they had considered stopping their mortgage payments.
• More than half (53 percent) believe homeowners bear the responsibility if they get a home loan they can’t afford.

What We’ve Learned

What we’ve learned from these and other survey results is that even in light of the housing crisis Americans still value homeownership. But they have made a shift to a “new reality” — one that is less willing to take on risk to own a home and more focused on making homeownership a success for the long-term. 

Click here to see the survey.

Happy Monday Morning!

Here is a snapshot of what the bond market is doing this morning and what effect it is having on interest rates today.

The red line is the opening price – the blue line is the current price. Remember, as bond prices go up, interest rates go down. We want the blue line to be above the red line.

Here is what lenders are doing so far today –

As of 9:45am, 83 lenders are improving (lowering) rates and 22 lenders are raising their rates. (Not all lenders react the same way or at the same time to economic news and market conditions.)

There is not much economic news for the next couple of days, but news about a Goldman Sachs investigation (they are being investigated for securities fraud) could lead to a DOW sell-off, and could help interest rates. There is important economic news coming out towards the end of the week which should have an impact on rates.