Mortgage rates are unchanged from yesterday morning.
Mortgage-backed bonds (MBSs) started the day lower in response to higher stock prices. Stocks are rallying on better than expected earnings reports from Intel and JP Morgan Chase. In addition, the Commerce Department reported that September retail sales were better than anticipated. The Dow Jones Industrial Average is flirting with the 10,000 level which many investors feel is an important psychological level.
MBSs have improved from the worst levels of the day thanks to strong technical support at the 200-day moving average. Later this morning the Fed will release minutes from their last open market committee meeting. This release does have the ability to impact the market; especially if it reveals new insights regarding their view of inflation.
For now, we will maintain a sort-term floating stance.
Current outlook: floating short-term, locking long-term