Rate Update March 5, 2009
Fixed Mortgage Rates have improved from yesterday.
Mortgage Backed Bonds have broken back through the layer of resistance once again that has been haunting them for the past month. Remember that Mortgage Bonds broke through this level earlier in the week, but quickly turned around and lost ground shortly after. If Bonds can gain enough momentum and break above the next layer of resistance, we could see some substantial improvements to interest rates. Although I still remain skeptical that they will reach 4.5% anytime soon.
In what may be good news for interest rates tomorrow, is definitely bad for our economy…and this is the Job’s report that will be released tomorrow. Expectations are that 650,000 jobs were shed last month. If that number is much higher than expectations, we could see a rally in bonds which would help rates move lower.
Current Outlook: Floating