Rate Update April 2, 2008

Hopefully your clients took our advice to lock in yesterday ahead of rates moving higher. This morning mortgage-backed bond prices are making another attempt to break below the 50-day moving average. You’ll notice in circled area below that the red bar (bond prices) is right on top of the black line (50-day moving average). This indicates that bond prices have moved lower this morning towards this level.

We are watching bond prices closely. Should bonds close below the 50-day moving average it would be a negative indicator for rates in the near future. However, we are crossing our fingers that bond prices bounce higher off the important level which would help rates move back down.

Current Outlook: neutral, watching bond prices @ the 50-day moving average

The views and opinions expressed in this site are those of the author(s) and do not necessarily reflect the official policy or position of Cherry Creek Mortgage Co., Inc. This is for informational purposes only. This is not a commitment to lend.