STRONG locking stance

Mortgage bonds fell below the 200 day moving average this morning, as the markets continue the fall that began after the Fed Meeting notes were released on Wednesday.  Although not a good sign, not all hope of rates moving lower is lost.  With the 25 DMA closely below, we are hopeful this will provide support.  Given the lack of news data, the technical signals seem to be driving the bond market.  We will continue to suggest short term transactions to lock.  If the bond makes a decisive move below the 200 DMA, we will shift to a strong locking opinion.