Mortgage Blog

March 2, 2007

Recomendation: Lock

Mortgage bonds are trading slightly higher as stocks trade lower. Some bad news from Dell, which saw it's fourth-quarter profit plunge 33% lower than a year ago levels, has applied selling pressure to stocks so far this morning.

The University of Michigan ’s Consumer Confidence Index for February was reported at 91.3, which was lower than expectations of 93.3. Bonds had little reaction to release.

Since there aren't any high impact reports scheduled for release until next Friday's Jobs Report, Bonds will likely continue to be influenced by stocks. With this in mind, we you could continue to Float because there is a chance stocks may continue to move lower, which would benefit Bonds. But, be aware that the Bond is also very overbought and ripe for a reversal lower hence why I personally would "lock" in an interest rate.