Today's Market Update- Thursday, July 9th, 2009 11:15AM ET

Current Trend Direction:  Sideways

Risks favor: Floating Rates Current Price of FNMA 4.50% Bond-   100.78, -16bp Bonds got a nice boost yesterday from a strong 10-Year Note Auction, giving them a strong 66bp gain on the day and giving them a convincing break above the tough ceiling of resistance, the 50-day Moving Average. Interest rates are lower but, can reverse sharply as technical indicators show bonds are "overbought". Hence, we are cautiously recommending floating interest rates here and be ready to lock in at a moments notice.     Economist and Author Harry Dent said in his July Forecast "This may be the last chance to refinance mortgages for lower fixed rates for the next 3 to 5 years".  His forecast calls for stocks and treasury yields to rally, followed by a falling stock market and rising interest rates.

30 Year Fixed Rates 5.125% APR 5.148%- No Points

30-Year Jumbo Fixed Rates to $729,000 5.25% APR 5.35%- 1 Point

30-Year Jumbo Fixed Rates to $1,000,000 6.00% APR 6.01%- No Points

5/1 Jumbo Arm to $1,500,000 4.50% APR 4.54% - No Points

7/1 Jumbo Arm to $1,500,000 5.00% APR 4.69% - No Points