Bond Market Update
Wednesday, March 22, 2017
What's going on and why does it matter?
Mortgage bonds rallied yesterday and are now trading in positive territory above their 30-day moving average. In fact, mortgage bond prices seem poised to test their 100-day moving average, which is within reach for the first time in several months. Bond prices are benefiting and stock prices are declining from a reversal of the "Trump trade." The market seems to be re-aligning its expectations to be later vs. sooner as to when Mr. Trump's proposed tax reform and economic stimulus programs may take effect. The Fed is scheduled to purchase up to $1.15 billion in 30-year conventional mortgage bonds today, which may help to propel bond prices higher.
What should you do about it?
Watch for bond prices to move higher and test their 100-day moving average. Be prepared to lock quickly if the market changes directions.
Economic CalendarEconomic reports that may impact mortgage rates this week:
NMLS Number: 1428557
VIP Independend Mortgage, Inc.
Corporate NMLS Number: 145502
3919 30th St, Suite 7
San Diego, California 92104