What Mortgage Rates Will Do Over The Next 30 Days (July 9, 2009 Edition)

5 weeks ago, Wall Street was mostly convinced that the economy was about to turn a corner. At the time, traders were piling into the stock market, chasing big gains and selling everything risk-averse. Mortgage bonds were in very low demand and the supply glut pushed rates north of 6 percent. Since then, the world has calmed down a bit. Housing and manufacturing continue to show strength, but some key pockets of economic weakness have poked investors into taking some profits off the table. The Dow has since shed some of its gains since March and the action is causing mortgage bonds to improve.