Rate Update February 24, 2009
Mortgage Rates remain unchanged today.
Even after a brutal day in the stock market (as the Dow and S&P hit levels we haven’t seen since 1997), Mortgage backed bonds were unable to break through overhead resistance.
There are a couple things not working in the favor of Mortgage backed bonds right now. One is if we do happen to see a rally in the stock market, it could pull investor dollars away from the bond market, causing mortgage rates to rise. The second is a $40billion auction of 2-yr Notes today at 1pm ET. This added supply could weigh on bond prices.
Current Outlook: Bias towards Locking