Many heard the news from the Fed that rates will continue to be low into 2023. However, the Fed Funds Rate is not the same as mortgage rates. Like we have said, there are many inflationary forces in the market right now and we expect to see mortgage rates rise alongside inflation.
We had a disappointing jobless claims report. Over 860k people filed for unemployment last week. This number seemed to go against the news that everyone has been hearing about the rate at which the economy is opening back up. But we still have about 29 million people receiving some sort of unemployment stimulus.
Mortgage bonds are at the bottom of a trading channel this morning – below both their 25 and 50 day moving averages. This means that you can make up some ground by floating as bonds will likely make their way upward. However, the move higher may be restricted due to the double ceiling.