Good afternoon everyone – I hope your day is off to an awesome start.
The S&P is rebounding today after yesterdays massive selloff. This bounce is largely fueled by some great earnings reports as well as news that the Fed will continue all avenues of stimulus from yesterdays meeting.
New home sales came in this morning showing a healthy 1.6% gain from last month. From a year ago, new home sales are up over 15% despite the massive inventory shortage.
Yesterday we talked about the MBS market being in a vulnerable spot and advised everyone to lock. Today, MBSs are down 12 bps. After bouncing off their 50 dma they are now sitting on top of their 25 dma. With more potential volatility, we are holding a locking bias.