Rate Update August 28, 2009
Mortgage rates are essentially unchanged from yesterday afternoon.
Mortgage-backed bond (MBS) prices are now trading within a tight trading range in between technical layers of support and resistance. This is illustrated in the chart below- MBS prices have remained between the blue line on the top and grey/ black line on the bottom for the past 7 trading days. When MBS prices enter a range such as this it is difficult to predict which way they will “break-out” but usually they leap one direction or the other which drives rates (either better or worse) for the days to follow.
MBS prices Aug. 28
This scenario is made more difficult by the fact that we are entering the “dog days of summer” when there are not as many traders in the market which can lead to more volatility.
Mortgage rates remain very attractive so the safe play is to lock and take your “chips off the table”. However, we do believe that rates have a chance of moving lower form current levels.
Current outlook: neutral
Posted: August 28th, 2009 under Rate Update.
Tags: aug 28 mortgage rate outlook, aug 28 mortgage rates, direction of mortgage rates august 28, MBS mortgage rates august 28, MBS prices aug 28, should I lock my rate? aug 28, what direction will mortgage rates go aug 28
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