26 Sep Locking is the safe play
Economic reports released this morning included Initial Jobless Claims, final read of GDP for Q2, and Pending Home Sales for August. Initial Claims came in at 305,000, which was below estimates and without any states indicating glitches. GDP was the same as the previous revision of 2.5%, but Pending Home Sales fell short of their target. That’s not a huge surprise, given the quick move up in interest rates that those searching for homes experienced during the last few months. But, it’s likely that sales will pick up in the next few months since rates look to have moved noticeably off of their highs for now. The potential of a government shutdown will continue to weigh on stocks, so the congress with the lowest approval rating in history may at least help keep interest rates low indirectly by their inability to perform. mortgage bonds down a bit so far today, and they are trading just under a notable price bump in the road from June. Locking in here at the top of the price channel would be a safe play, especially on short term transactions.