What's going on and why does it matter?
Mortgage bonds opened lower this morning as the market turns cautious
ahead of tomorrow's speeches by Fed Chair Yellen and European Central
Bank President Draghi. Mortgage bonds are still trading near the upper
end of their recent range. It seems like bond prices may be more likely
to back off these levels than to break above them. On the economic
calendar, the initial jobless claims numbers came out lower than
expected which indicates continued strength in the jobs market. There
are also some housing numbers that are scheduled to be released later
this morning. The Fed is very supportive of the mortgage market today
with a scheduled purchase of up to $2.125 billion of 30-year
conventional mortgage bonds.
What should you do about it?It's probably a good idea to lock your rate while mortgage bonds remain near the upper end of their recent trading range.
Economic reports that may impact mortgage rates this week: