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.