Rate Update May 5, 2009

Posted on by Evan in Rate Update

Fixed Mortgage Rates are even with yesterday.

Mortgage Backed Bonds are currently trading slightly higher on the day and remain above a strong floor of support.  With about 65 basis points between current levels and the next level of resistance, we can feel pretty comfortable floating a rate lock right now in hopes that we can see bond prices improve over the next few days.  For comparison sake, a 65 basis point increase in bond prices could help 30 yr fixed mortgage rates by .125% to .25%. 

Current Outlook: Floating while bonds stay above the current level of support

 

 

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