Rate Update March 11, 2009

Fixed Mortgage Rates are even with yesterday.

Currently Mortgage Backed Bonds are unchanged on the day as interests are similar to yesterday.  Speaking of yesterday, we saw the largest one day rally in four months in the stock market. This rally didn’t hurt mortgage backed bonds much as they still remain above the 25 day moving average.  If bonds can stay above this floor of support, we might see improved pricing in the coming days, but if the stock market continues to rally it will be tough to keep bonds at the level they are currently trading.  Remember that stocks and bonds compete for the same investor dollar so if there is a rally in the stock market, some of the trillions of dollars being invested in the market, could shift to stocks and away from bonds.

Current Outlook: Cautiously floating.

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.