What's going on and why does it matter?
Mortgage bond prices opened lower today as the 100-day moving average has been operating as a formidable ceiling of technical resistance. Bond prices failed to rally above that critical level yesterday in spite of heavy purchases by the Federal Reserve. The Fed is scheduled to purchase up to $1.05 billion of GNMA mortgage bonds today, but they won't be buying any mortgage bonds tomorrow due to Fed Chair Yellen's scheduled testimony before Congress. Although most of this week's economic reports are slated for Thursday and Friday, we can have the JOLTS report and the wholesale sales numbers scheduled for release later this morning.
What should you do about it?
Lock your rate to be safe, especially while mortgage bonds continue to trade below their 100-day moving average.
Economic reports that may impact mortgage rates this week: