Good Morning,
I hope that your Tuesday is off to a fabulous start!
In the financial Sector, Stocks staged a HUGE rally yesterday, and the S&P 500 climbed into positive territory for the first time in 2009. Better still, the boost in Stocks suprisingly did not weigh on Mortgage Bonds, which enjoyed a nice ride yesterday. Often when stocks rise mortgage bonds will fall and Mortgage Rates will climb along with the Stock Market as a result, since the supply of money is theoretically fixed.
This morning, Stocks got off to a sluggish start after government stress tests revealed that ten large banks may need to raise capital to endure the ongoing recession. Mortgage Bonds, however, are higher on the news.
For now, I recommend continued cautious floating of your mortgage rate to see if prices can once again retest resistance at the top of the trading range. I will keep you posted on any changes that might affect your positions. In the meantime, I truly hope that you have a great day and if there is ever anything that I can do for you, please let me know.
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