Rate Update March 26, 2009

Fixed Mortgage Rates are even with yesterday.  

The government will be auctioning off $24 Billion of 7-year notes today which could add some selling pressure to the bond market overall on the day.  Yesterday’s auction didn’t help bonds much as they dropped about 12 basis points on the day, yet still remained above a floor of support.  Ever since falling from it’s highest levels on Thursday morning, Mortgage Backed Securities have seemed to stabilize at current levels.  It will be interesting to see if we get into another tight trading range for the next month as we saw before this last rally.

For now, as bonds stay above the floor of support they have bounced off a couple times in the last few days, it is fairly safe to keep a floating stance on locking.

Current Outlook: Cautiously floating