Happy Tuesday to you. Rates are better today as the stock market takes a breather off a disappointing ALCOA earnings report yesterday. We are butting up against the 200-day moving average right now. I am advising my clients to lock today. I am not confident that the bulls (in the bond market) will have the power to push above this tough ceiling.

Also on the rate front...there has been some talk by the Federal Reserves presidents that some feel the mortgage bond purchase program should be extended. If this were to happen we could see rates stay lower past the next month or so. I dont think it would be wise to wait on a new loan to see if this happens, but if you are looking to buy later this spring it could mean good news for you. I dont know if rates will be much lower than they are now if that were to happen, but it could mean we see rates just under 5% past my current estimate of mid-February.

Have a great day!