S&P at 200 Day Moving Average - Bonds Start to FallWe may be reaching the end of the great rates that we've seen for the past several weeks. The S&P is currently sitting right on the 200 day moving average and bond traders know that if that level holds it may mark an upward trend in stocks. Mortgage bonds were up as much as 25 basis points in earlier trading but as stocks have expanded their gains the bond has moved downward, now down 12 basis points from Monday's close. That puts lenders in a position to raise points commensurate with the Fannie Mae bond price.
Lock or Float?
We've had a great run, but we don't want to be complacent. If you or anyone you know and care about is on the fence, it may be very advisable to Apply and lock now ahead of what "technically" could be the start of a bumpy ride for mortgage rates.
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