The Chinese Economy Getting Support

U.S stocks move higher in early morning trading as investors gain hope from China that its government will further help support the Chinese economy as it suffers through the longer term effects of the coronavirus.  Inevitably, there will be many large businesses that suffer.  The governmental support will likely be directed towards the overall economy in China and not in supporting corporations that are experiencing losses.  Therefore, individual global stocks will suffer but the overall market will receive some level of support.

At 12:00 PM MST today, we will receive the meeting minutes from the Fed’s most recent FOMC meeting.  Generally speaking, days the Fed releases their minutes aren’t friendly to mortgage interest rates.  However, since Fed Chairman Jerome Powell has recently testified before congress, we don’t anticipate any new major revelations that will adversely impact mortgage interest rates.  At this point, the market is clear on where the Fed stands and what is expected for short term interest rates.

We will maintain a locking bias.