Tuesday 10/21 ... The Rally Continues?

Today brings us the release of no key economic reports, so headlines and the stock market will help drive the action. Yesterday our mortgage backed securities had an awesome day improving over 100 basis points. It appears investors are finally starting to see the value of mbs. Bill Gross, head of Pimco and one of the largest holders of mbs, increased their buying and others jumped on the bus. Usually on days when the Dow soars over 400 points, it usually causes a drag on mbs buying, but not yesterday and this is a good sign. It appears that a lot of money that has been on the sidelines, is starting to find its way into the markets, all of the markets. Yesterday everything was up, gold, oil, stocks, bonds, treasuries.... We are starting to see investors willing to take risk and start investing again.

We have been stating for quite some time that we believe that rates will trend lower as the year progresses. We took a few steps backwards over the previous couple weeks, but that trend has definitely turned. How far can rates drop, hard to say, but all things point to rates approaching historic lows.

Floating is the good call for the day, but as we have seen in the past few months things could turn on a dime and change quickly. Stay tuned to our blog and we can alert you in plenty of time to get your loan locked. If you are considering locking, wait til lender cut off time as the price gains from the last few days have not found there way onto lenders rate sheets yet. Today, we should see considerably better rate sheets then yesterday.