What's going on and why does it matter?
Mortgage bond prices are sharply higher following reports that President Trump asked former FBI Director Comey to end an investigation of former National Security Advisor Flynn.
The drama unfolding in Washington DC is eroding Trump's support in Congress, which is lowering the likelihood of any significant economic stimulus or tax reform. In fact, future Fed rate increases are also being called into question, with the odds of a Fed rate hike in June dropping to 69% from well over 80% just last week.
The Fed is scheduled to purchase a sizable $1.575 billion of GNMA and 15-year mortgage bonds today, which may help to support the rally in bond prices.
What should you do about it?
Watch for mortgage bonds to continue improving from these levels, but be prepared to lock your rate if the market changes directions.
| 
No comments:
Post a Comment