Rate Update February 17,2009

Mortgage Rates are slightly lower than Friday

Mortgage Bonds are trading higher today but have again found themselves up against heavy resistance. So far today, bonds have been the safe haven for investor’s money as the stock market is considerably lower.  The Dow Jones is close to a floor of support that it tested back in November and if it can manage to hold at that level again, we expect the market to recover in the short term.  This would likely pull some money away from bonds, so although we feel it is OK to float for now, it probably won’t be long until we switch to a locking stance.

Current Outlook: Cautiously floating but ready to lock in small gains.