Rate Update February 26, 2009
Fixed Mortgage Rates are considerably higher than yesterday.
What I thought may take a couple days, only took about 6 hours. Yesterday Mortgage backed bonds slipped over 40 points and caused lenders to re-price during the day a couple times. The good news (maybe) is that Mortgage backed bonds are currently trading up against a level of support. If they can rebound off this support we may see improved rates in the coming days. However, if they break through the support, it could be another .25% higher to rates until the next level of support.
We will be watching closely to see if bonds can rebound and will take a floating position for now. If the support fails, tomorrow’s rates may not be pretty though.
Current Outlook: Cautiously Floating