Wednesday, August 13, 2008
Rate Watch: Floating
The Current Trend Direction this morning is sideways after weak economic reports by John Deere and Macey's. Stocks have taken a slight downturn which has helped Mortgage Bonds hold onto their gains from yesterday. Technically, Bond price is currently at 99.94, above support of 99.09 and below a tough ceiling overhead at the 25 days moving average of 100.11 and the 50 Day MA at 100.30. For now we can float, but I will watch closely for movement since Bonds are trading within a wide range right now. I just received a rate lock alert after the market lagged this morning and early this afternoon. With the higher inflation report I now recommend locking. 12:40 p.m.