Stocks climbed higher in early morning trading, regaining some of the losses absorbed from yesterday. Support provided by the 50 day moving average was the saving grace for stock investors. However, with stock prices now at the top of their trading range, where the market goes from here will be critical for the markets. If stocks are able to break above the current ceiling, it seems likely that prices will once again challenge all time high levels. However, a move lower would show weakness in the market that could lead to a more dramatic fall. Time will tell.
With President Trump back in the White House, he seems to be pushing to get back to work quickly. This is adding optimism to the markets, helping to contribute to today’s stock market strength.
Mortgage bonds are now trapped right within the middle of a trading range. With limited room between current levels and the top of the trading range, there is limited benefit to float.
Also, conventional refinanced not locked by tomorrow will experience the additional 1/2% fee. As a result, we have a strong locking bias on conventional refinances.