Rate Update May 30, 2008

Mortgage rates made a surprise reversal lower this morning on inflation & spending data that came in line with analysts’ expectations. Furthermore, we also think that an announcement out of the Federal government that they are opening an investigation regarding price manipulation in the energy trading markets could be helping mortgage rates. For a more detailed explanation about this reasoning watch today’s you tube video.

We still believe rates will move higher based on technical trading patterns so we are going to maintain a locking bias.

Current Outlook: locking bias