Great time to lock!

Both mortgage bonds and stocks are higher so far this morning.  Today is a relatively quiet economic news day, so trading will rely heavily upon the
technical picture.  Mortgage bonds are in a very wide range, with the past 8 trading days maintaining a sideways pattern without too much volatility. 
Anytime bonds trade in such a tight pattern in the middle of a wide range, it shows a bit of indecisiveness.  It is almost as if bonds want to
improve.  However, there is very strong resistance just overhead that bonds have not been able to break above.  In fact, bonds have not been
above that level since February 6^th, which was the day mortgage bonds feel nearly 100 basis points after the release of January’s job growth
report.

The National Association of Realtors reported that HUD Secretary Castro said that the FHA is looking into alternative credit scoring models to help more
credit worthy people buy a home.  The new model would put less emphasis on unpaid medical debts and eliminate the effect of missed payments on
debts that have subsequently been paid.  This would provide a significant boost to our housing market, as many more potential homebuyers would
be in the market for a home.  Homeownership rates have dropped dramatically the past few years, which has pushed the cost of renting much higher. 
When people compare the cost of owning vs. renting, they will see the benefit of long term homeownership. 

With bonds trading in a wide range just beneath significant resistance, now is a great time to lock.  It isn’t likely that the technical picture will
push bonds above this level today, making today’s pricing very attractive to lock in.