Fixed Mortgage Rates are even with yesterday.
Bonds are trying to fight their way back above the 25 day moving average in the wake of yesterday’s stock market losses. Currently Bonds are trading even on the day but if they can break through the 25 day moving average ceiling of resistance, we could see some improved pricing in the next couple days.
Yesterday the stock market did not like the news that the government would be converting their preferred bank stocks to common stock. Today Treasury Secretary Timothy Geithner will testify before congress regarding the $700 billion financial rescue program. If Mr. Geithner can’t communicate a clear message to his audience, we may see the stock market continue to lose some ground, which may cause bonds prices a bit higher. For this reason, we will continue to keep a floating stance.
Current Outlook: Floating