The Congressional testimony of former FBI Director
Comey didn't provide the smoking gun that some were looking for, and it's unclear
whether it will impact the President's economic and legislative agenda.
Mortgage bonds are nearly unchanged as global financial markets digest
Overseas in the UK, Prime Minister May's Conservative Party lost its
majority position in a stunning loss. The defeat will force the Prime
Minister to cobble together a coalition government and is likely to make
Brexit negotiations more difficult for her.
Financial markets don't seem to
be having much of a reaction to the news. Mortgage bonds are continuing to
trade above their 200-day moving average, and it will be interesting to see
if they can stage a rebound off these levels. The Fed's mortgage bond
buying activity today is limited to $625 million of 15-year conventional
What should you do
about it? Watch for mortgage bonds to bounce higher off their 200-day moving
average, but be prepared to lock your rate quickly if bonds fall
back below this critical level of support.
reports that may impact mortgage rates this week: