Rate Update September 28, 2009

Mortgage rates are unchanged from Friday.

Mortgage-backed bond prices have successfully broken above the all-important 200-day moving average.  As a result mortgage rates have improved modestly from the middle of last week.

At this point we need to be prepared to pull the trigger on a lock from a technical perspective.  In addition, as we outlined in Friday’s ‘rate update’ we think mortgage rates are poised to move higher because of comments made by the Fed.

It will be relatively quiet in terms of economic data for the first half of the week.  However, begining on Thursday we’ll get a load of significant data which will have the ability to move the markets.  We remain in a locking bias.

Current outlook: locking