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

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.