Fixed Mortgage Rates are even with yesterday.
In the past few weeks of the rate update, you have read that Mortgage Backed Bonds have run into strong resistance each time it hit the 25 day moving average. This resistance has kept a lid on any prospective rally back down to when rates were at 4.5% briefly. Yesterday afternoon Mortgage Backed Bonds hit a mid-day rally and finally broke through the resistance of the 25 day moving average…But instead of rallying further, it has turned right around and is already trading lower by 31 basis points this morning. In my opinion, this makes any hopes of rates back to the 4.5% range pretty dismal in the near future. At this point, I think we are lucky to at least be in the low 5% range.
The Treasury will be auctioning off more Bonds in the next week which will continue to add supply to the bond market. Although this isn’t good news form Mortgage Rates; recent weeks have shown the auctions not to affect the Rates too much.
Current Outlook: Cautiously Floating