Mortgage bonds are still trading below their 100-day moving average as
stock prices continue to trade at record highs. Favorable
earnings reports and the rally in the stock market seems to be
putting a damper on bond prices. It's likely that this trend will
continue in the absence of any major risk events that may change market
sentiment. The Fed is scheduled to purchase up to $1.085 billion of GNMA
mortgage bonds today, and their support of the mortgage market will be
somewhat limited for the remainder of the week.
should you do about it?
It's probably a good idea to lock your rate while mortgage bonds
remain near the top of their recent range.
reports that may impact mortgage rates this week: