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Mortgage Market Update - Recommendation To LockWhile the Bond market got what it wanted as the Core Consumer Price Index showed tame consumer inflation. The Core CPI for April was reported up 0.2% which lowered the year over year Core rate to a better than expected 2.3% and closer to the Fed's target zone of 1 to 2%. However, the Mortgage Backed Securities, which long term mortgage rates are based on, are only modestly higher and unable to recover losses from yesterday. More importantly, Bonds are still below the 200-day Moving Average and have failed to rally back above it after this morning's good news on inflation.If Bonds are unable to get back above the 200-day Moving Average, that once strong floor of support during the past 9 months will become a tough ceiling of resistance. The last time the Bond fell below the 200-day MA, it traded beneath that level for over a year and a half. Therefore, in light of the Bonds failure to make a significant rally and its position below the 200-day MA, we are advising a locking position even though prices are slightly higher this morning. We see a greater potential for pricing erosion in the days ahead. This is a synopsis of the daily update I receive from Mortgage Market Guide. For Today's Rates. Larry Morris is a loan Officer with Equipoint Financial Network in Newberg, Oregon. He specializes in relocations and Sherwood, Oregon neighborhoods. He can be reached at larry.morris@equipoint.com. His website is www.PDX-Mortgage.com. This material is copy protected 2007 by Larry Morris, Mortgage News that Matters. All Rights Reserved 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, |
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Larry Morris, CMPS, Newberg Oregon NW Lending Solutions Newberg, OR Office Phone: (888) 660-2842 Cell Phone: (503) 421-0096 More information... Contact Larry Morris, CMPS, Newberg Oregon |
