Rate Update March 24, 2009
Fixed Mortgage Rates are even with yesterday.
Mortgage Backed Bonds only lost 9 basis points yesterday while the stock market rallied to about a 7% gain. I see this as good news for mortgage rates as bonds held their ground against equity markets. Remember that stocks and bonds fight for the same investment dollar so anytime we can get a large gain in the stock market, without much fallout in equities we are doing well.
Earlier this morning bonds tested a floor of support level and was able to bounce off so I think that floating right now is OK, but we will keep a close eye to make sure that bonds don’t drop below.
Current Outlook: Cautiously floating to see what way bonds start to trade