Rate Update March 9, 2009

Fixed Mortgage Rates have increased slightly form Friday.

Mortgage Backed Bonds lost some momentum on Friday afternoon and are currently trading at the 25-day moving average.  If prices drop below this level, we could see further hikes to mortgage rates in the coming days.  For now, it looks like Mortgage Backed Bonds are holding their ground so I will advise to float for now.  There is a tough resistance level ahead at the 75 day moving average which bonds have not been able to break through in the past two months.  Unless Bonds can somehow break through these levels, I don’t see rates getting much lower than 4.875% for a while.

Current Outlook: Cautiously floating.