It looks like the Dow and S&P 500 are trying to end the week in the green; but hovering in their 200-day moving average can’t leave investors feeling too convinced that this is a turning point back up. A convincing break below this area will likely lead to strong sell off. Mortgage bonds are in the red again, and that makes it 10 trading days in a row since interest rates have moved to their new respective higher range.
There was not much news to move the markets with any conviction today, but there were a few housing reports of interest. Existing home sales and existing sales % change for September both came in below expectations. This is just another report that lends itself to the growing concern that housing prices may have topped out. While that’s a glimmer of hope for buyers, affordability is still an issue since interest rates have moved up and look to push higher.
We will maintain a locking bias.