Rate Update March 27, 2008

Mortgage-backed bonds are testing the 50-day moving average again today. On Monday we hit the 50-day moving average and bounced higher which helped rates move modestly lower. If we can bounce higher again we should see rates improve. However, we remain concerned about the strength of the 50-day moving average as a support level. Should bonds manage to break through we could count on rate moving higher in the near term.

Current Outlook: neutral with bias towards locking.