Fixed Mortgage Rates are even with Friday.
Mortgage Backed Bonds are trading about even on the day after testing the floor of support at the 25-day moving average. This is typically a good sign in that Bonds did not give way to selling pressure and have rebounded off the lowest levels of the day. I think that it is still safe to float for now, but if Bonds test the floor of support again and don’t come away as well as they did this morning, it will be wise to lock in ahead of any decreases in bond prices that would occur after the floor of support is broken.
On the news front, Fed Chairman Ben Bernanke, in an interview yesterday said that America’s recession will “probably” end in 2009. This is the most optimistic view I have heard recently and as it is coming from the Fed Chairman himself, I hope it has some truth behind it. Read the article here.
Current Outlook: Cautiously floating as bonds trade above the 25 day moving average