Fixed mortgage rates have improved from yesterday.
Yesterday I mentioned that we were eagerly awaiting a speech from Treasury Secretary Timothy Geithner regarding the new plans of TARP funds. What a disappointment that was. Rather than laying out the plans for the money, Timothy was vague and inconsistent with any meaningful thoughts. The stock market did not like the speech either, as the Dow Jones lost nearly 400 points.
The Senate passed the stimulus bill yesterday and Congress will now work on the bill that will hopefully be ready to be signed by President Obama by this weekend.
Mortgage Backed Bonds are trading even on the day in the wake of these events after a couple good days…unfortunately that could have been at the cost of the stock market selling off yesterday.
Technically, bonds are trading above the 50 day moving average, which is now serving as a level of support. We will continue to float as they trade above this level.
Current Outlook: Cautiously Floating