We can probably expect to see bonds and Treasuries trade near their current levels as Wall Street can’t seem to make up its mind which direction it wants to go. Last week, Freddie Mac reported that interest rates fell yet again and the rate for a single single family rental property dropped six basis points to 4.125% on the 30 year note.

Home Sales Up, Pendings Down

The final revision for Q2 GDP came in higher than expected at a respectable 3.9% of growth, this report came just one day after the September FOMC meetings wrapped up. It’s possible that had the Fed board had this new GDP information during or before last week’s meetings the Fed Funds rate might have in fact been raised. In light of the Fed sitting on its hands, an October increase looks more and more likely. Or is it?

While new home sales rose to a seven-year high, pending sales of existing homes fell for the month of August. This back and forth of positive and negative data is keeping stocks in check and when this happens, money flows back into Treasuries, bonds and mortgage bonds. This new money is continuing to keep mortgage rates in a fairly tight range. The Dow has also had trouble getting past the 16500 mark while the 18000 level we saw this past summer seems to be in the distant past.

We’re entering the final quarter of the year and time will seem to fly by for many as holidays take up much of the calendar. It will be difficult to rally equities and mortgage rates will benefit. That said, if you’re considering refinancing your investment properties, it’s a prudent move to do so now as rates really can’t move much further with bias to the upside.