Rate Update February 20, 2009

Mortgage Rates are slightly lower than yesterday.

Mortgage Bonds are trading higher this morning as the stock market continues to fall.  The Dow is at the same level if was 12 years ago.  The latest floor of support for the Dow is at 7197, which was tested in 2002.  I am going to be selfish here and hope that the stock market can rebound from these lows and start the long trek back up the ladder…even if it is at the expense of mortgage rates.

Mortgage Bonds have yet to be able to break above the ceiling of resistance, even with the losses in the stock market.  This inclines me to take a locking position on short term transactions.

Current Outlook: Locking