What's going on and why does it matter?
Mortgage bonds are continuing to drift sideways in the absence of major market-moving news. Later this morning, we have the job openings report (JOLTS) as well as the wholesale sales and inventory reports, none of which usually cause a significant market reaction.
The Fed is scheduled to purchase up to $1 billion of GNMA mortgage bonds today, and there are three Fed policymakers who are scheduled to give speeches today. It appears that mortgage bonds may continue to trade in a range between their 30-day and 100-day moving averages until a clear direction is established.
What should you do about it?
Lock your rate to be safe.