Fixed Mortgage Rates are up from yesterday.
Mortgage Backed Bonds are trading lower on the day after getting hammered yesterday. Mortgage Backed Bonds are now trading below the 25 day moving average and have a bit of room below them before the next floor of support.
During yesterday’s Fed meeting, it was announced that inflation remains “subdued” for now as the Core Personal Consumption Expenditure index has remained unchanged at a year-over-year rate of 1.8%. It is thought by some analysts that inflation can become more of an issue later this year and move into headlines during 2010. Remember, inflation is the nemesis of Mortgage Rates so if inflation does become a major concern later this year or the next, we can assume that mortgage rates will increase significantly from their current levels. There is no time like the present to take advantage of these low rates!!
Current Outlook: Locking on short term transactions