Rate Update January 22, 2009
Fixed mortgage rates are even from yesterday.
Mortgage Bonds have been very volatile in early morning trading after giving up nearly 30 basis points in late afternoon trading yesterday which prompted many lenders to have a mid-day price for the worse.
It seems that bonds have bounced off the floor of support for now so we still think floating is a good option. The fact that fixed rate mortgages have risen about .625% from their lows in late December makes me think that when rates do dip down again (assuming they do), it will be a lock now or forever hold your peace type situation. It has become obvious that even though we all think mortgages rates should stay low, there are going to be times when they unexpectedly rise, perhaps for weeks at a time.
Outlook: Cautiously Floating