What's going on and why does it matter?
Mortgage bonds are continuing to trade near their highest levels of the year as tensions continue to swell between the US and North Korea. It is estimated that global stocks have lost over $1 trillion of value this week as investors sold their positions and flocked to the safety of the bond market. Even so, keep in mind that the market quickly reversed course the last time mortgage bonds traded at these lofty levels. In today's economic news, consumer inflation (CPI) came out this morning weaker than market expectations, and two Fed policymakers are scheduled to give speeches later this morning. The Fed's mortgage bond buying activity today is limited to $475 million of 15-year conventional mortgages.
What should you do about it?
Lock your rate to be safe.
Danny Smith, CMPS