RATE INCREASE! We expected rates to increase from yesterday's rate sheets following the stock market's rebound late in the day. Again, stocks and bonds compete against each other so, typically, when one is having a good day, the other suffers.
WHAT'S GOING ON.....
This morning, there are no economic reports scheduled for release. Bonds are lingering near support and the good news is that Bonds do have additional multiple levels of support closely underfoot - starting with the very important 25-day Moving Average.
On the heels of yesterday's recommendation to Lock, we could see a little more price erosion (rate increase)before a likely bounce higher off support. So for this morning, I will cautiously float and watch how the Bond trades. If Bonds break below the 25-day Moving Average, I will change my stance to locking.
As of today, we are offering a 30-year fixed rate at 6.50% with no points.
Make it a GREAT day!
Santos
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