Rate Update May 26, 2009
Fixed Mortgage Rates are even with Friday.
Mortgage Backed Bonds are holding on to the floor of support that they are up against currently. With stocks starting to gain some momentum in trading as the day moves on, it will be important that bonds can hold on to their current levels.
Also pressuring bonds this week will be the auction of Treasuries hitting the market. As mentioned last week, there will be $162 Billion in Notes and Bills hitting the floor this week and will most certainly increase the supply levels.
As bond prices remain above the floor of support we can float an interest rate lock, but things may happen quickly so it will be important to keep an eye on things today. If bonds fall below the floor of support, it will be time to LOCK
Current Outlook: Very Carefully Floating