Rate Update May 12, 2009

Fixed Mortgage Rates are down slightly from yesterday.

Mortgage Backed Bonds enjoyed a nice day yesterday as they finished up about 60 basis points on the day.  This increase helped drive mortgage rates lower throughout the day.  So far this morning Mortgage backed Bonds have been trading up against a dual layer of resistance, which is the 50 and 100 day moving averages.  

If bonds can break through this resistance overhead we could see some nice gains ahead for bonds and improved pricing on the rate sheet in the coming days, but if bonds give way and start to decline we will need to take advantage of the past two days trading and lock in rates.  

Current Outlook: Cautiously Floating