Monday, April 6, 2020
What's going on and why does it matter?
Mortgage bonds have been drifting sideways with little volatility over the past week in a sign that the Fed's massive bond-buying program has been working. Since the Fed reinstated its bond-buying program on March 16, they have purchased $363.4 billion of mortgage bonds. The Fed is scheduled to purchase another $100 billion of mortgage bonds this week, which should continue to stabilize the market.
In other news, stocks are pointed to a higher open this morning amidst signs that the rate of new coronavirus cases and deaths appears to be slowing. Even so, US Surgeon General Jerome Adams warned yesterday that “This is going to be the hardest and the saddest week of most Americans’ lives" due to the coronavirus deaths that are expected. As for the week's economic calendar, the market may react to the first wave of Q1 corporate earnings releases which will be getting underway this week. The market closes early on Thursday and is closed on Friday for Good Friday.
What should you do about it?
Watch and see if mortgage bonds can hold their ground, but be prepared to lock your rate quickly if bond prices start to decline.
Economic reports that may impact mortgage rates this week:
Please be aware: by refinancing your existing mortgage, your total finance charges may be higher over the life of the loan.
Topics: Refinance, Interest Rates, Mortgage Interest Rates, home loan refinance, lower interest rate, Corona Virus, COVID-19
