A Good Vibe from the Bond Pits Today

Mortgage bonds are rallying today and having the best go of it since mid-September.

From a technical perspective, today's rally is a good bounce off of mortgage bonds 200 day moving average but there is still strong resistance they must trade through before we should get real excited.

On the fundamental level, the day-to-day news of the unraveling of the recent housing boom, and the extent of how much "bust" there will be can always make mortgage bonds trade lower in the blink of an eye.

In summary, there is some positive momentum underway but the overall risk-to-reward balance is still heavily skewed towards risk.  This means you should be locking any new mortgage financing onto a fixed-rate product sooner than later during your effective timeframe to make such a decision.

Have a great day!

Brett