Rate Update February 9, 2009

Fixed mortgage rates are about even with Friday.  

 Mortgage Backed Bonds are trading sideways this morning as it awaits news from Washington on the Stimulus package and TARP announcement.  The stimulus package has run into some resistance as of late because many lawmakers feel that some of the money would be going towards items that would not help the economy. 

Treasury Secretary Timothy Geithner was expected to release the plans of TARP to start the “Bad Bank” today, but that has been postponed until tomorrow.  In the meantime, bonds aren’t moving too much right now and we will see if the markets will move when that news is released.  For now, we will continue to float as bonds are right in the middle of a trading range and still remain above a level of support.

 Current Outlook: Cautiously Floating