20 August 2009 ? Bonds are currently up 12 bps but are hitting a ceiling of resistance for the 200 day moving average. There is tracking of the bond market, stock market, etc and typically there are indicators that can give trends. These moving averages, if broken through, would mean lower rates but typically you hit the 200 day moving average and then the bonds will reverse course and interest rates will go up slightly. The pattern then can start all over again. So when discussing the mortgage bonds, watching the moving averages is very helpful to assist my clients on when to lock their loan. Right now bonds are testing the moving day average so we will see where we fall after the announcements and stock market movement.
The Dow is up 46. The 30 year fixed rate remains between 4.875% and 5.125% which the 15 year is at 4.375% to 4.625%. Also, if you are a first time buyer you can look at the 5/1, 7/1 or 10/1 Arm to try and get a rate in the low 4?s.Email This Post To a Friend.