Great time to lock

Great time to lock

Markets opened to pressures from overseas, as the Asian markets sold off again.  Japan led the drop, with the Nikkei plunging over 6%.  Still, U.S indexes are in the green after positive data from Retail Sales and lower Initial Jobless Claims.  mortgagebonds are higher as well, but they are still trapped below previous support.  Freddie Mac reported that interest rates had risen to 3.98%, with paying an average buy down cost of .7% for the rate.  Interest rates have not made any significant effort to push lower, as mortgage bonds can’t seem to get out of the descending channel.  We can start the day with a floating bias, but it has been common for bonds to give up all of their daily gains as the day wears on. In that case, we will shift to a locking bias.