What's going on and why does it matter?
Mortgage pricing is continuing to deteriorate as the global bond market continues to react to recent comments made by various central bankers from across the world. The final GDP estimates for the first quarter of 2017 came out this morning stronger than expected, which may add fuel to the market's expectations that interest rates are likely to move higher. Mortgage bonds are trading firmly below their 200-day moving average, and it seems like the next hard stop on the way down could be the 100-day moving average. The Fed is scheduled to purchase up to $1.05 billion of GNMA mortgage bonds today, and they'll be back in the market tomorrow buying some 30-year conventional mortgages.
What should you do about it?
Lock your rate to be safe.
Mortgage pricing is continuing to deteriorate as the global bond market continues to react to recent comments made by various central bankers from across the world. The final GDP estimates for the first quarter of 2017 came out this morning stronger than expected, which may add fuel to the market's expectations that interest rates are likely to move higher. Mortgage bonds are trading firmly below their 200-day moving average, and it seems like the next hard stop on the way down could be the 100-day moving average. The Fed is scheduled to purchase up to $1.05 billion of GNMA mortgage bonds today, and they'll be back in the market tomorrow buying some 30-year conventional mortgages.
What should you do about it?
Lock your rate to be safe.
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