Friday, May 20, 2011

Mortgage rates likely flat today

Good morning insighters and HAPPY Friday!

OK yesterday we covered to strong areas,
1) we tested a low of 99.75 (FNMA 4.0 coupon) and
2) closed at the days high over a critical support level of 100, closing at 100.031

There is absolutely nothing driving today's market in the US all focus is on the Greek debt restructure, reschedule??? whatever they may or may not do. Many traders are looking to short the bonds as they have had a nice long but slow and steady climb over the last month. Carrying a short on bonds will be a tough and very risky call with the Greek debt issue having no solid direction so I think today will see us regain the minor loss and likely close between 100.0 - 100.1 (FNMA 4.0)
The 10Y is doing well and back down from its high of 3.20 to 3.15.

Lock advice
If closing 7-10 days  Float (I believe we have a good week next week as Greek issues will be answered and that should drive more money into the safety and security of our Bonds)
if closing 14+ Float (same as above)

Have a great weekend

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