Interest rates moved higher yesterday as bonds sold off their earlier morning highs.
Mortgage backed bonds have already traded in a very large range in early trading this morning as traders remain uncertain of the auto bailout, and dismal economic reports (Retail Sates and inflation). Currently bonds are down 34basis points which have caused lenders to increase rates from the stellar levels we saw yesterday morning.
From a technical standpoint, it still looks as though bonds are overbought, and with this extremely volatile market it will be crucial to make quick decisions as to lock in a rate when one presents itself that your customer’s are comfortable with…because as we all now by now, it may not last long.
Current Outlook: very cautiously floating with finger on the lock button