Current Price of FNMA 5.5% Bond:  $97.968

30 Yr Fixed prices at par are now around 6.125%

Currently, the Bond Market is getting hammered. We've seen a loss of 22 bps (basis points) today alone. We are in the midst of a reprice for the worst yet again today.

However, we could be ripe for a correction. Bonds are currently in an over sold situation. Profits have been taken and bond traders will be looking at picking up more inventory. In addition, we are nearing at an important floor of support at the $97.97 level.  We will want to be patient and see if this floor can stop the recent downtrend.  Usually these trends will lead to a bounce back which could help improve interest rates.

On brand new transactions, we are going to advise Cautiously Floating as the Bond hovers just above this floor of support. If you have a loan that needs to close in the next few days, and haven't locked yet, you probably should!!

Larry Morris is a loan Officer with Equipoint Financial Network in Newberg, Oregon. He specializes in relocations and Sherwood, Oregon neighborhoods and Yamhill County. He can be reached at larry.morris@equipoint.com . His website is http://www.pdx-mortgage.com/. This material is copy protected 2007 by Larry Morris, Mortgage News that Matters. All Rights Reserved His opinions do not necessarily represent the views of Equipoint Financial Network.

Licensed in: OR, WA, AL, AK, AZ, CA, CO, CT, FL, GA, HI, ID, IL, IN, IA, MD, MA, MI, MS, MO, MT, NE, NV, NH, NM, OK, SC, SD, TN, TX, UT, VT, VA,

Larry Morris is a Certified Mortgage Planning Specialist with American Nationwide Mortgage Company in Newberg, Oregon. He specializes in USDA Guaranteed Rural Home Loans, FHA Purchase and Refinance, FHA 203k Rehab loans, Sect 184 Native American loans, Hobby Farm loans and conforming purchase and refinances in the states of Oregon and Washington.

He can be reached at 503-421-0096, or larry@PDX-Mortgage.com.

www.PDX-Mortgage.com

OR License ML-3259
WA License WA-510-LO-51175

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APR rates are subject to change based on lender's normal credit guidelines and market conditions.