Fixed Mortgage Rates are even with yesterday.
Mortgage Backed Bonds are currently trading 16 basis points higher on the day even as the stock market is up over 50 basis points. Bonds are now stuck in a tight trading range of about 25 basis points between the 100 day moving average as the floor, and the 25 and 50 day moving averages as the ceiling. With no economic news scheduled for this week, the bond market should continue to react to the stock market this week.
Treasury Secretary Geithner will testify today in front of the Senate banking Committee regarding the Troubled Asset Relief Program (TARP). There has been a lot of talk lately about many firms whom were handed Billions of dollars in the past months; now preparing to pay back the TARP funds. So far the stock market is reacting favorably to these talks but is also up against some resistance from a technical trading standpoint.
Current Outlook: Floating