What's going on and why does it matter?
Mortgage bonds opened lower today in continuation of yesterday's sell-off. Mortgage bonds are trading firmly below their 200-day moving average, which is now operating as a technical ceiling of resistance. The recent decline in bond prices was triggered yesterday after President Draghi of the European Central Bank signaled that it may be time to start increasing interest rates in Europe. Combine that with recent comments from the Fed, and it seems like global interest rates may finally start to move higher. The Fed is scheduled to purchase up to $1.625 billion of 30-year conventional mortgages today, which may help.
What should you do about it?
Lock your rate to be safe, especially while mortgage bonds continue to trade below 200-day moving average.
Economic reports that may impact mortgage rates this week: