Fixed mortgage rates are quite a bit better than where they ended up last week.
There is no economic news on the schedule for this shortened Holiday week so Mortgage Bonds are likely to trade off the stock market’s direction. We expect that there will be lightened trading this week due to the holidays. These lower trading volumes can cause unexpected price movements and volatility this week, but we are getting used to that from the last three or four months.
Currently Mortgage Bonds are trading up 41 basis points so we will continue to take a floating position on rate locks.
Current outlook: cautiously floating