Rate Update June 17, 2009
Fixed Mortgage Rates are down from Tuesday.
Mortgage Backed Bond’s continue to battle resistance but have managed to gain enough ground to have lenders lower rates again. Over the past five trading days Mortgage Backed Bonds have gained over 350 basis points, causing lenders to lower rates by about .5% since the turnaround. Yesterday bonds received some help from the stock market as the Dow has lost almost 40 points since being turned away from its 200 day moving average. The S&P 500 and the Dow Jones are now both headed lower towards their 50 day moving averages. If these levels can hold ground and the stock market rebounds, we could see an end to the bond market’s recent rally.
We are getting very close to wanting to lock in the recent gains and it will be important to keep a close eye on the markets in the coming days to be able to lock in current transactions at the right time.
Current Outlook: Very cautiously floating