Rate Update January 21, 2009

Fixed mortgage rates are even from yesterday.  

 Mortgage Bonds seem to be in an oversold state currently; that and the fact that they are trading right up against a floor of support should make for an opportunity to rise back in the coming days and help Mortgage Rates decrease.

 One thing that could work against Mortgage Rates falling again is the success of the new stimulus and rescue package’s being put together in Washington.  If these packages do start working rather quickly, inflation could pick up steam quickly and hurt Mortgage Rates.  For now, we will base our stance on technical patterns and still look at floating long term.

 Outlook: Cautiously Floating