Rate Update March 17, 2009
Fixed Mortgage Rates are slightly improved this morning.
Is it just me, or have I been saying the same thing about Mortgage Backed Bonds for a month now? Once again, Mortgage Backed Bonds have rebounded off the 25-day moving average yesterday and are trading 9 basis points higher on the day. If the last few weeks have anything to do with it; I suspect that mortgage rates will remain at this level for a day or two, then increase slightly higher for a week or so, then come back down again (as Mortgage Bonds hit, and retreat from the 50-day moving average).
Hopefully I am wrong and bonds can clear a new3 path past the 50-day moving average and we can see some significant price improvements in the future. For now, I will take a floating stance, but it may only take a day or two, until I am singing a different tune.
Current Outlook: Cautiously floating as bonds trade above the 25 day moving average