What's going on and why does it matter?
Mortgage bonds are trading in positive territory as August gets underway with mixed headlines. On the positive side, economic reports in Europe and China were favorable overnight, and pharmaceutical company Eli Lilly said that it was beginning phase 3 trials on a Covid-19 vaccine. Even so, market sentiment may be tempered by the lack of progress on another US economic stimulus package, rising tensions between the US and China, and continued spikes in coronavirus cases. The economic calendar this week is quite full and it concludes with Friday's closely-watched jobs report. The Fed is scheduled to purchase up to $4.996 billion of mortgage bonds today, while supply has been running around $6.8 billion per day.
What should you do about it?
Watch for mortgage bonds to remain in positive territory, but be prepared to lock your rate if mortgage bonds fall below their 10-day moving average.
Economic reports that may impact mortgage rates this week:
Topics: Refinance, Interest Rates, Mortgage Interest Rates, home loan refinance, lower interest rate, Corona Virus, COVID-19