Tuesday, June 20, 2017

What's going on and why does it matter?

Mortgage bonds are continuing to trade between their 30-day and 200-day moving averages.  The economic calendar is quiet again today, although there are a few Fed policy-makers who are scheduled to give speeches. The Fed is scheduled to purchase up to $900 million of GNMA mortgage bonds today, but they'll be back in the market tomorrow with a sizable purchase of 15-year and 30-year conventional mortgage bonds.

What should you do about it?
Lock your rate to be safe; especially as mortgage bonds struggle to break above their 200-day moving average.

MBS Chart

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