Rate Update June 25, 2009

Fixed Mortgage Rates are even with yesterday.

The Fed’s announcement yesterday was very anticlimactic as no rate change was made, nor any plans were released regarding an expansion of their Bond purchase program.  The Bond market finished the day even on the news (or lack thereof) and Mortgage Rates have remained the same for the past few days now.

The 200 day moving average is still just ahead for Mortgage Backed Bonds so we will have to wait and see if they can break through this resistance.  The stock market is also up against some resistance of their own with the 50 day moving average.  If stocks get pushed lower, it may be enough to help Bonds make the push past their 200 day moving average.  Also being worked into the mix will be the $27 Billion in 7 year notes that will be auctioned off later today.  The first two auctions of the week have been successful and Mortgage Rates will need the next auctions to go well also if they are going to be moving lower any time soon.

Current Outlook: Cautiously floating