Fixed mortgage rates are unchanged from yesterday.
Mortgage Bonds are unchanged this morning in what has proven to be a very tight trading range.
Today at 1pm ET, the Treasury will auction off $40B in 2-year T-Notes. This added supply to the market could put some downward pressure on Bonds today unless it is sopped up by some high demand. “Hey Fed, maybe today is a good day to step in and purchase an extra dose of Mortgage Backed Securities”. The Fed will begin a 2-day meeting this morning that will conclude with an interest rate decision and Fed policy statement tomorrow. As there isn’t much room for the Fed Funds rate to go, analysts will be paying close attention to how the Fed addresses the current economic state.
Current Outlook: Floating