Continued Locking Stance

Investors thought they were in the clear yesterday, until speaker of the house John Boehner announced that he would support the President in an air strike against Syria.  That caused stocks to give up most of their gains, and it helped mortgage bonds pare most of their losses.  The threat of military involvement in the middle east is keeping the markets in check for now.  The highlight of the week will be the monthly Jobs report on Friday, and it’s preceded by the ADP Employment and Initial Jobless Claims tomorrow.  mortgage bonds are holding on to resistance for now.  However, with the significant volatility that will likely surround the employment reports, the safe play is to lock.  Based on the trends of the market and the outlook in the near future, rates are showing a likelihood to be higher in the next 60 days than they are today.