Rate Update April 9, 2009
Fixed Mortgage Rates are up slightly from yesterday.
Mortgage Backed Bonds are trading lower on the morning by about 20 basis points while stocks rally. Some good news for the banking industry was released today as the New York Times is reporting that the US Bank system is in better shape than most people think. This announcement comes in the wake of Wells Fargo Bank reporting 1st Quarter earnings of almost $3Billion, which was far greater than expectations.
It will be important to keep a close eye on the 25 day moving average for bonds as the stock market is rallying a bit. If Bond prices fall below this level, it may be a good time to lock in loans that are set to close in the next few weeks.
Current Outlook: cautiously floating