As planned, the 10 Year Treasury Note yield bounced off the ceiling that has been in place for more than 4 years, at the same time the stock market bounced off of its 200 day moving average. This is helping to improve mortgage interest rates, or at least allow them to stabilize at current levels.
The next nine days could bring news that shows the Federal Reserve has finally accomplished its target goals that were implemented following the financial crisis. For one, we could learn that Core consumer inflation has reached the 2% level which has proven to be one of the more stubborn objectives. Secondly, it is likely we will see wage growth levels finally move to acceptable levels as well. With wage pressure and job growth helping to drive our economy higher, there is not much of a need for the Federal Reserve to maintain stimulus. This will provide Fed members a level of comfort while continuing to push short term interest rates higher.
As we receive the pending economic reports over the next week and a half, we could see volatility increase. Hopefully, the technicals will hold.
With support levels holding, there is no need to immediately rush to lock. However, be careful if floating.