14 May Locking in a safe play
So much for worrying about the Fed pulling out…. Stocks closed mixed yesterday, but investors are pushing them higher this morning as the S&P500 is close to 1,650. There are no economic reports today, but the calendar heats up tomorrow and continues through the rest of the week. mortgage bonds closed off of their lows yesterday, indicating the possibility of a turn around if prices can follow through over the next few days. Interest rates moved off of their lows quickly, as mortgage bonds dropped over 200 basis points in just 8 days. That pushed rates higher by up to 3/8%, depending on the scenario. With prices trending lower, locking in will be our recommendation until they stabilize or improve.