What's going on and why does it matter?
Mortgage bonds are drifting sideways as they trade in a range between their 200-day and 100-day moving averages. Unemployment claims have declined for three weeks in a row per today's numbers, and the market is bracing for a strong jobs report tomorrow. In the meantime, look for bonds to take a wait and see approach during today's trading... barring, of course, any market-moving headlines coming out of Washington. The Fed is scheduled to purchase up to $1.51 billion of 30-year conventional mortgage bonds today.
What should you do about it?
It may be a good idea to lock your rate ahead of tomorrow's closely-watched jobs report.