What's going on and why does it
Mortgage bonds opened higher this morning after bouncing off their 10-day
moving average in yesterday's volatile day of trading. The European Central
Bank (ECB) announced this morning that they will extend their massive bond
buying program for a while longer, and so the bond market is rallying
today. On the economic calendar, the jobless claims numbers jumped this
week due to the initial economic impact from Hurricane Harvey. The Fed is
scheduled to purchase up to $1.475 billion of GNMA mortgage bonds today,
and a few Fed policymakers are scheduled to give speeches.
What should you do about it? Watch for mortgage bonds to remain in positive territory above their
10-day moving average, which has been operating as a technical level of
support. However, be prepared to lock your rate quickly if mortgage bonds
fall back below that level.
reports that may impact mortgage rates this week: