What's going on and why does it matter?
Mortgage bonds are continuing to drift sideways between their 10-day and 30-day moving averages. Stocks were pointed to a higher open this morning after the recent sharp sell-off related to plunging oil prices and the glut of oil supply. The market seems to be encouraged by the passage by the Senate late yesterday of a $484 billion coronavirus relief package to help small businesses and hospitals, with more funding for testing. The Fed is continuing to support the mortgage market with a scheduled purchase of up to $10.7 billion of mortgage bonds today, which represents roughly 35% of the new supply being issued.
What should you do about it?
Lock your rate to be safe.
Economic reports that may impact mortgage rates this week: