Rate Update April 13, 2009
Fixed Mortgage Rates are even with Friday.
The Bond Market is currently trading up on the day, after falling below the 25 day moving average on Thursday. As you know, bonds have been using the 25-day moving average as a floor of support for the last couple months. Now that bond prices have dropped below this level, it will be interesting to see if they can break back through, or if the 25 day moving average will no serve as a ceiling. If that is the case, I would expect mortgage rates to increase in the near future.
This week also has a number of companies reporting earnings and I imagine that the stock market will react accordingly to how some of those reports come out. If reports do mot meet expectations we could see some sell off in the stock market (which enjoyed it’s 5th consecutive week of gains last week) helping out mortgage backed bonds. If earnings are reported well, and further gains in the stock market occur, we could see bond prices fall further which would pressure rates higher.
Current Outlook: Locking