Bonds Break Above 200 Day Moving Average 

Mortgage bonds are flat on the day, which is actually a great sign for mortgage interest rates. Bonds were able to break above their 200-day moving average yesterday, and have so far maintained their position.  Although this does little to impact mortgage rates immediately, it makes a significant impact to the longer-term perspective.  Since the 200 day Moving Average is considered to be a trend setter, we will likely see rates improve in the near term as bonds are able to hold above this critical level.

Consumer Confidence was released this morning, coming in stronger than anticipated. It seems that with tax reform on the table, consumers are feeling better about their financial futures.

The Federal Reserve began day one of their two-day meeting this morning, with an announcement on policy changes or interest rate changes expected tomorrow at noon MST. Although it is not expected that rates will move higher, the statements made following the meeting could move the markets. Therefore, we must remain on guard.

With bonds now above their 200 DMA, we can hopefully float. However, if bonds break lower, lock immediately.