Rate Update March 11, 2008

Continued uncertainty about the value of mortgage-backed bonds has pressured rates higher over the previous few days. This morning the Fed stepped in to provide additional liquidity for financial institutions to buy mortgage-backed securities by increasing their “Term Securities Lending Facility”. This was a good sign but may not be enough to save mortgage-backed bonds drifting below important technical support.

Mortgage-backed bonds have now been pushed back to the 200-day moving average. As we’ve talked about in recent days this level of technical support is critical in keeping rates around current levels. We’ll keep a close eye on the bond chart today. Should bonds dip below that 200-day moving average a locking position would be wise.

Current Outlook: very, very cautiously floating, ready to lock

The views and opinions expressed in this site are those of the author(s) and do not necessarily reflect the official policy or position of Cherry Creek Mortgage Co., Inc. This is for informational purposes only. This is not a commitment to lend.