Rate Update June 1, 2009
Fixed Mortgage Rates are even with Friday morning (higher from afternoon rates)
Mortgage Backed Bonds are trading significantly lower this morning, already down about 100 basis points. This sell off has essentially taken away any gains that were made on Friday as the bond market was able to gain some ground after bouncing off the 200 day moving average. The decrease in bonds today is being fueled by the rally in the stock market as the Dow Jones is currently up over 200 basis points. As we often talk about, stocks and bonds fight for the same investment dollar and is so the case today as investors are pulling money out of the bond market and parking it in stocks.
Current Outlook: Locking as bonds are trading in a very large trading range and heading in the wrong direction