Rate Update May 5, 2009
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